Taste-based Discrimination Theory

Consider a company that does not have discriminatory preferences against women (d = 0). In a world with preference-based discrimination where women's wages are less than men's wages, who will that company hire?

• Only men
• Only women
• They are indifferent between hiring men and women.
• Exactly equal amounts of men and women.
• They will be driven out of business in a competitive market, so nobody.