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

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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.

Suppose That White Workers Are Getting Paid $21/hour, While Similarly