One of the theories behind why discrimination seems to persist is that markets are not competitive. One theory is that additional search costs on the part of women and minorities, combined with market power for employers, leads to lower wages for women and minorities. Graphically depict how, in a non-competitive labor market where women and minorities have high search costs, wages will be lower than the MRP of workers. Briefly explain your graph.
One of the theories behind why discrimination seems to persist is that markets are not competitive. One theory is that additional search costs on the part of women and minorities, combined with market power for employers, leads to lower wages for women and minorities. Graphically depict how, in a non-competitive labor market where women and minorities have high search costs, wages will be lower than the MRP of workers. Briefly explain your graph.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: The Supply Of And Demand For Productive Resources
Section: Chapter Questions
Problem 12CQ
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