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(c) Characterize the labor-market equilibrium that emerges when V(8) = 100 + 50. 8. Is there discrimi- nation against Black workers? im fir r
(c) Characterize the labor-market equilibrium that emerges when V(8) = 100 + 50. 8. Is there discrimi- nation against Black workers? im fir r f Worked Problem 11.2 Equilibrium Employer Discrimination MR 150 per day. Problem. Assume that the labor market satisfies the (a) What is the labor-market outcome in the conditions laid out in Model 11.1, there are 400 absence of any discrimination? White workers are Black workers, and 800 White workers (who sup- (b) Assume that V(8) = 100 + 50-8, where V(8) ply their labor inelastically). Assume both Black and equally materially productive, and their common constant marginal product of labor is 50 widgets per day. Suppose that each widget sells on a competitive market at a price of $3 and there are a total of V = 1700 job slots. denotes the number of of job slots offered by firms with coefficients of discrimination that satisfy & 8. Determine the number of job slots offered by nonprejudiced firms. Evaluate the coef- ficients of discrimination for the most prejudiced firm in the economy and for the median employer.
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