In a model of job search with search frictions,it is difficult and time-consuming for workers and job vacancies to find each other.In this environment,the presence of prejudiced employers has a effect on minorities' bargaining positions and a effect on minorities' wages.
A) negative;negative
B) negative;positive
C) positive;negative
D) positive;positive
E) neutral;negative

Question

Quizplus · Accepted Answer

In a model with search frictions, prejudiced employers can worsen minorities' bargaining positions due to fewer employment opportunities, leading to lower wages for minorities.

In a Model of Job Search with Search Frictions,it Is