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Taste-based Discrimination Theory Consider a labor market for men and women with two types of workers in each group, high ability (H types), and low

Taste-based Discrimination Theory

Consider a labor market for men and women with two types of workers in each group, high ability (H types), and low ability (L types). H types among men and women have a productivity of 70 and L types among men and women have a productivity of 30. Among women 2/3rds are H types, and 1/3rd are L types, and among men are H types, and L types. In this economy suppose you find instead that men and women are paid the same on average. What theory of discrimination might best suit this finding?

Statistical discrimination

No theory of discrimination is needed since men and women are paid the same

Taste-based discrimination

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