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Customers of the firms and not the employers themselves

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Consider a taste-based discrimination model where employers indulge in a taste to treat workers differently based on some demographic characteristic such as race or gender. Is the labor market discrimination that we would then observe more likely to persist over time if the employers are in perfectly competitive industries or industries with monopoly power? How does your answer change if the agents who indulge their taste to discriminate are customers of the firms and not the employers themselves?

Reference no: EM131768762

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