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The Becker model suggests that if enough non-discriminatory employers entered the market it is possible that we might observe no wage differentials across groups (say

The Becker model suggests that if enough non-discriminatory employers entered the market it is possible that we might observe no wage differentials across groups (say men and women, or Blacks and whites), even though some firms may be be racist and sexist.

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  • True: what matters is the marginal employer, not the average employer
  • False: even 1 discriminatory employer implies there has to be a wage differential

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