Assume that all workers are equally productive, but the wage rate for men is $12, compared to $9 for women. An employer who employs only male workers must have a discrimination coefficient of

Question

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The discrimination coefficient measures the cost an employer is willing to bear to hire a less preferred group of workers. If the employer only hires men despite women being equally productive and cheaper ($9 vs. $12), the employer's discrimination coefficient must be more than the wage difference of $3, indicating a strong preference for male workers despite the higher cost.

Assume That All Workers Are Equally Productive, but the Wage