If workers in one group are discriminated against and face higher search costs,then

Question

Quizplus · Accepted Answer

Discrimination and higher search costs result in lower labor market mobility for the group facing discrimination, which increases employers' monopsony power over them. This can lead to lower wages and worse working conditions for them compared to the other group. Thus, option C is the correct choice. Option A is incorrect because a nondiscriminating employer may still offer lower wages to the group facing discrimination if they have less bargaining power. Option B is also incorrect because discrimination and higher search costs can lead to poorer job matches for the affected group due to limited access to information and networks. Option D is incorrect because the secondary job market typically refers to informal, unstable, and low-paying jobs rather than a systematic outcome of discrimination and search costs.

If Workers in One Group Are Discriminated Against and Face