Question
Wage Discrimination in the labor market In your textbook in chapter 14 there is a figure 14.5 that shows wage discrimination in the labor market.
Wage Discrimination in the labor market
In your textbook in chapter 14 there is a figure 14.5 that shows wage discrimination in the labor market. What are the key assumptions made when constructing that figure? Please use the same set-up to illustrate: i) a labor market A where there is no employer discrimination (d=0) and ii) labor market B where all employers are discriminating against African American workers, but their psychic costs vary (not all employers have identical d's --- some discriminate more, some discriminate less). Note that you need to create two separate graphs.
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