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###### 8. (4 points) The figure below shows trend in median earnings among prime-age men. Between the...

8. (4 points) The figure below shows trend in median earnings among prime-age men. Between the bottom of the early 1980s recession in 1982 up to 2013, inflation-adjusted median earnings of men aged 25 through 44 fell by about $1,000, from $34,000 to $33,000. However, the samc carnings mcasure rose by more than $3,000 for white men, increascd just under S1,000 for black men, staycd flat for Hispanic men, and shot up by $10,000 for othcr men (mostly Asians). What is the reason for the discrepancy? Simpson's paradox and median earnings What is the reason for the discrepancy? Real median earnings of 25-44 year-old men by race $45,000 $40,000 $35,000 $30,000 S $25,000 $20,000 $15,000 $10,000 $5,000 So 1982 2013 All White Black Hispanic Other Source: Author's calculations from the March Curent Population Survey amingadeflated usingthe PCE dellator from the Bureau of Economic AnalysisBROOKINGS

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