Questions and Answers
How does employee discrimination impact firm profitability according to the text?
It has no impact on firm profitability.
Why do integrated firms need to offer more than GHC15 per hour to attract white workers?
Because of compensating wage differentials.
What happens to labor demand for black and white workers when employers hire whichever labor is cheaper?
Demand for black labor increases, demand for white labor decreases.
Which factor plays a significant role in the determination of compensating wage differentials?
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Why might integrated firms need to offer more than GHC15 per hour even if they dislike black workers?
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What effect does labor mobility have on compensating wage differentials?
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In a color-blind employer scenario, what drives their hiring decisions?
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How does perfect substitutability between black and white workers affect labor market discrimination?
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How does human capital contribute to differences in wages between black and white workers?
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Why do color-blind employers favor hiring cheaper labor?
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