Question: Suppose black and white workers are complements in that the marginal product of whites increases when more blacks are hired. Suppose also that white workers
Suppose black and white workers are complements in that the marginal product of whites increases when more blacks are hired. Suppose also that white workers do not like working alongside black workers. Will discrimination by white employees lead to the firm choosing to completely segregate its work place? Does it create a wage differential between black and white workers?
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