Suppose that a prejudiced white employer is willing to hire white workers at a rate of $16/hour, and this employer has a discrimination coefficient of $4. This implies that the employer would

Question

Quizplus · Accepted Answer

The discrimination coefficient of $4 means the employer values the productivity of nonwhite workers $4 less per hour than that of white workers. Therefore, to equalize the perceived value, the employer would be willing to hire nonwhite workers at $16 - $4 = $12/hour or less.

Suppose That a Prejudiced White Employer Is Willing to Hire