Asked by Emily_ nicole on Jun 16, 2024

verifed

Verified

Suppose that white workers are getting paid $21/hour, while similarly productive African-American workers are getting paid $18/hour. A prejudiced white employer with a discrimination coefficient of $24/hour will

A) hire African Americans only if their wage rate falls to $3/hour.
B) hire African-American workers.
C) not hire African Americans at all, even if they offer to work for free.
D) not hire African Americans, unless they work for free.

Discrimination Coefficient

A measure used in economics to quantify the extent to which individuals or groups are treated differently, often in the context of market transactions or employment.

Wage Rate

The amount of compensation a worker receives in exchange for their labor, typically expressed per hour or year.

African-American Workers

Refers to the labor force segment consisting of workers who are identified as African-American or Black, focusing on their employment conditions, challenges, and contributions.

  • Investigate the repercussions of discrimination on earnings and career positions in labor markets.
verifed

Verified Answer

SR
shasha ruslanJun 22, 2024
Final Answer :
C
Explanation :
The discrimination coefficient of $24/hour means the employer values avoiding hiring African-American workers at $24/hour. Since this is higher than the wage difference ($21 - $18 = $3), the employer would not hire African-American workers even if they offer to work for free, as the "cost" of discrimination exceeds the wage savings.