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Can Economics Overcome Discrimination? Suppose an Economy Has Two Groups

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Can economics overcome discrimination? Suppose an economy has two groups of individuals-Xs and Ys-who have similar skills. Most employers, however, have a bias against Ys, so they hire only Xs. Thus Xs earn higher wages than Ys. Explain how economists predict that this discrimination will be overcome in the long run?

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If a few employers begin to hire Ys, the...

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