Labour-market discrimination,which keeps one group of workers out of elite (E)occupations and limits them to ordinary (O)occupations,will have which of the following effects?

Question

Quizplus · Accepted Answer

Labour-market discrimination results in a decrease in supply of workers in E occupations, which in turn leads to higher wages in those occupations as the demand for workers remains constant. Meanwhile, the discrimination also leads to a surplus of workers in O occupations, which in turn leads to lower wages in those occupations as the supply of workers exceeds the demand. Therefore, the correct choice is A.

Labour-Market Discrimination,which Keeps One Group of Workers Out of Elite