LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Question
Chapter 9, Problem 1RQ
To determine
Explain the discrimination coefficient.
Expert Solution & Answer
Explanation of Solution
Generally, the taste discrimination affects the hiring decision of the employers because prejudice blinds the employer to the actual monetary cost of hiring a particular employee. In such situation, the measurement of the strength of an individual’s discriminatory taste is called discrimination coefficient that is denoted by ‘d’.
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- Will a free market tend to encourage or discourage discrimination? Explain briefly.arrow_forwardIf it is not profitable to discriminate, why does discrimination persist?arrow_forwardDoes the earnings gap between the average wages of females and the average wages of males prove labor market discrimination? Why or why not?arrow_forward
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