Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

Exercise 12

In Becker's taste for discrimination model, what is the meaning of the discrimination coefficient d If the monetary value of d is, say, $6 for a given white employer, will that employer hire African-American or white workers if their actual wage rates are $16 and $20, respectively Explain. In Becker's model, what effect would a decrease in the supply of African-American labor have on the African-American to white wage ratio and the employment of African-American workers Use the model to explain the economic effects of an increase in employer prejudice. What are the basic public policy implications of this model