One of the theories behind why discrimination seems to persist is that markets are not competitive. One theory is that additional search costs on the part of women and minorities, combined with market power for employers, leads to lower wages for women and minorities. Graphically depict how, in a non-competitive labor market where women and minorities have high search costs, wages will be lower than the MRP of workers. Briefly explain your graph.
One of the theories behind why discrimination seems to persist is that markets are not competitive. One theory is that additional search costs on the part of women and minorities, combined with market power for employers, leads to lower wages for women and minorities. Graphically depict how, in a non-competitive labor market where women and minorities have high search costs, wages will be lower than the MRP of workers. Briefly explain your graph.
Chapter1: Making Economics Decisions
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Transcribed Image Text:One of the theories behind why discrimination seems to persist is that markets are not competitive. One theory is that additional search costs on the part of women and minorities, combined with market power for employers, leads to lower wages for
women and minorities.
Graphically depict how, in a non-competitive labor market where women and minorities have high search costs, wages will be lower than the MRP of workers. Briefly explain your graph.
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