Final answer:
Market forces can incentivize businesses to practice less discrimination. A diverse customer base, labor shortages, and the need for skilled workers drive businesses to adopt more equitable practices to maintain economic viability and compliance with anti-discrimination policies.
Step-by-step explanation:
Market Incentives Against Discrimination
Discrimination in the labor market occurs when employees with identical qualifications receive different compensation based on race, gender, religion, age, or disability. However, market forces can pressure businesses to act in a less discriminatory manner:
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- Customer Base: A flower delivery business with a diverse customer base might lose sales if the owner's bias affects service quality or public image, pushing them towards non-discrimination.
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- Labor Scarcity: An assembly line facing labor shortages may be motivated to hire more inclusively to ensure sufficient staffing, effectively combatting gender discrimination.
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- Equal Pay for Equal Work: A home health care provider may find it harder to retain skilled Hispanic workers if they're paid less than their peers, making nondiscriminatory wage practices more economically viable.
Businesses may also be incentivized to adopt less discriminatory practices due to the threat of losing sales or productive workers and to align with public policies that mandate equal treatment and pay.