LABOR ECONOMICS
LABOR ECONOMICS
8th Edition
ISBN: 9781260004724
Author: BORJAS
Publisher: RENT MCG
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Chapter 9, Problem 1RQ
To determine

Explain the discrimination coefficient.

Expert Solution & Answer
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Explanation of Solution

Generally, the taste discrimination affects the hiring decision of the employers because prejudice blinds the employer to the actual monetary cost of hiring a particular employee. In such situation, the measurement of the strength of an individual’s discriminatory taste is called discrimination coefficient that is denoted by ‘d’.

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Answer
M” method  Given the following model, solve by the method of “M”. (see image)
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