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Why do economists in the Becker framework care about the marginal employer and not the average employer? Because you can have labor markets with firms

Why do economists in the Becker framework care about the marginal employer and not the average employer?

  • Because you can have labor markets with firms that discriminate and still find no evidence of wage gaps
  • Because the marginal employer is always a discriminating employer in the Becker model
  • The statement is wrong: economists actually care about the average employer in the Becker model

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