This question asks you to evaluate possible types of discrimination based on the

Question

This question asks you to evaluate possible types of discrimination based on the wage and employment outcomes observed in a market. For each market described below, provide at least one kind of discrimination that could produce this outcome (and explain) Suppose that in a market, we observe that black and white workers are hired into the same jobs but the white workers are paid more. Suppose that there is a market where firms hire both black and white workers but assign them to different jobs within the firm. Suppose that in a market, we observe that white workers earn higher wages but firms tend to hire either black or white workers (but not both).

Explanation / Answer

1- This situation happened in South Africa where discrimination was based on the white and black peoples. White peoples get more pay in comparison to black peoples.

2- This things happened in United States where only white peoples got higher rank in there defense services whereas black peoples are not eligible for higher rank.

3- The firms in United States followed this trend in mid 50’s, they hire only white peoples for higher post and black peoples for labor specially in coal mines etc.

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