5. Racial discrimination in the labor market The following graphs depict the labor market in a hypothetical economy. One graph assumes employers do not discriminate, and the other assumes employers practice racial discrimination. Use the graphs to answer the following questions. Graph I WAGE (Dollars per day) 200 8 8 8 8 180 160 140 8 8 8 8 8 8 100 20+ Market Demand 0360 12 15 18 21 24 27 30 LABOR (Hundreds of workers per day) Market Supply No one Graph I assumes that employers discriminate against which workers? O White workers Graph II WAGE (Dollars per day) 8 8 8 8 8 8 8 8 8 8 150 100 140 120 100 20 0 Nonwhite Supply with no labor market discrimination, the equilibrium wage rate for all workers is 3 Under discrimination, the equilibrium wage rate for white workers is S nonwhite workers of S per day. White workers earn workers earn than they would in the labor market with no discrimination Nonwhite Demand White Supply 3 60 12 15 18 21 24 27 30 LABOR (Hundreds of workers per day) per day. White Demand per day, which is than the equilibrium wage rate for than they would in the labor market with no discrimination, and nonwhite
5. Racial discrimination in the labor market The following graphs depict the labor market in a hypothetical economy. One graph assumes employers do not discriminate, and the other assumes employers practice racial discrimination. Use the graphs to answer the following questions. Graph I WAGE (Dollars per day) 200 8 8 8 8 180 160 140 8 8 8 8 8 8 100 20+ Market Demand 0360 12 15 18 21 24 27 30 LABOR (Hundreds of workers per day) Market Supply No one Graph I assumes that employers discriminate against which workers? O White workers Graph II WAGE (Dollars per day) 8 8 8 8 8 8 8 8 8 8 150 100 140 120 100 20 0 Nonwhite Supply with no labor market discrimination, the equilibrium wage rate for all workers is 3 Under discrimination, the equilibrium wage rate for white workers is S nonwhite workers of S per day. White workers earn workers earn than they would in the labor market with no discrimination Nonwhite Demand White Supply 3 60 12 15 18 21 24 27 30 LABOR (Hundreds of workers per day) per day. White Demand per day, which is than the equilibrium wage rate for than they would in the labor market with no discrimination, and nonwhite
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter14: Labor Markets And Income
Section: Chapter Questions
Problem 9SCQ: Explain i11each of the following situations how market forces might give a business an incentive to...
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