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Suppose that wages for visible minority and white workers of equal productivity are $12 and $13 an hour, respectively. If a particular firm hires only whites, its discrimination coefficient must be >1,<1, 0 or infinity?

2006-12-14 06:51:44 · 2 answers · asked by Anonymous in Social Science Economics

2 answers

Greater than $1.

Discrimination coefficient would be the wage difference the employer is indifferent to race when hiring. Because at $1 they still higher all whites, so it is more than that.

UNLESS you interpret the question to mean that firm hires whites only ALL the time, then the answer is infinity.

2006-12-14 07:41:11 · answer #1 · answered by JuanB 7 · 1 0

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2016-12-11 09:08:24 · answer #2 · answered by fette 4 · 0 0

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