Answer:
Step-by-step explanation:
I
n this article, we discuss the theory and evidence on discrimination in two
key domains—the labor market and the criminal justice system—from an
economic perspective. We define discrimination as treating someone differently based on characteristics such as gender, race, or religion. Prejudice may lead
to discrimination, but only if you act on it. Moreover, discrimination by individuals
does not necessarily lead to discrimination at a market or societal level. We focus
primarily on discrimination against blacks, although many of the concepts l assessment of a nonrepresentative
sample, as when an employer ascribes differences in an earlier job applicants pool
to a current one even though the applicant population has changed.
The canonical Becker ([1957] 1971) model of employer discrimination suggests
that market forces push back against taste-based discrimination, because prejudiced
employers will pay more for (or hire less qualified) preferred race workers, thereby
decreasing profits. Consequently, in a basic model, competition from nondiscriminating firms drives discriminators from the market until wage