One of the main effects of discrimination in labor markets is that:

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Discrimination in labor markets often leads to persistent wage disparities, which means that certain groups of workers may consistently earn less than others despite having similar qualifications or productivity levels. This can occur due to biases related to race, gender, age, or other characteristics that unfairly influence hiring and wage-setting processes.

Wage disparities can persist over time because discriminatory practices and beliefs can become entrenched within organizations and industries. For instance, if firms continually reward certain demographics over others based on preconceived notions rather than actual performance or skill, this can create a cycle where affected groups remain at a disadvantage. Additionally, discrimination can hinder access to promotions and professional development opportunities, further entrenching wage differences across generations.

This understanding contrasts with the other options presented. For instance, the idea that all workers receive equal pay or that there are no wage differences ignores the reality of unequal treatment and economic outcomes in the labor market. Similarly, the assertion that new jobs are constantly being created does not directly relate to the effects of discrimination, as job creation can occur irrespective of wage disparity issues.

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