A labor market is divided into two segments.All workers have the same qualifications and find jobs in either segment equally attractive.Initially,both segments are in competitive equilibrium.If the development of employer prejudice then reduces the employment of minorities in one segment,there will be a

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The development of employer prejudice reduces the employment of minorities in one segment, leading to a temporary drop in labor supply to the discriminating segment. This implies that the affected minority workers will shift their job search to the non-discriminating segment, leading to a temporary increase in labor supply to that segment. However, over time, the labor market may adjust, and the discrimination may lead to a permanent drop in labor demand to the discriminating segment.

A Labor Market Is Divided into Two Segments