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Taste-based Discrimination Theory Consider the standard set up for thinking about statistical discrimination from previous classes (groups have same average productivity, but one group has
Taste-based Discrimination Theory
Consider the standard set up for thinking about statistical discrimination from previous classes (groups have same average productivity, but one group has a lower slope on the signal component - call this group women). A govt issues a minimum wage requirement. Which of the following is true:
- Since the min wage is mandatory, signals will not matter
- At any given min wage, employers will hire low signal men and high signal women
- At a high enough min wage, employers will hire low signal men and high signal women
- None of the above - need more information to ascertain this
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