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

Quizplus · Accepted Answer

The discrimination coefficient must be more than $3 because the employer is willing to pay $3 more for male workers despite equal productivity, indicating a preference or bias worth more than the wage difference.

Assume That All Workers Are Equally Productive, but the Wage