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' wages.The extent of the wage discrimination depends on the prejudice of the employer.
A) negative;average
B) negative;marginal
C) positive;average
D) positive;marginal
E) neutral;average

Question

Quizplus · Accepted Answer

Prejudiced employers have a negative effect on minorities' wages, which means that wages for minorities will be lower than for non-minorities. The extent of this discrimination will depend on the level of prejudice, with more prejudiced employers leading to greater wage discrimination. Therefore, the effect on wages is negative and average, as it applies to all minorities.

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