Question

In the taste-for-discrimination model, an increase in the prejudice of employers will decrease the demand for African-American workers, lower the African-American wage rate, and lower the ratio of African-American to white wages. True False

Answer 1

The Given statement is True

Explanation:

Taste-based discrimination is an employment market discrimination economic system that claims that workers could have an adverse effect on hiring minority employees, bias or aversion to a corporate culture based on forbidden motives, that is to say, they feel like discrimination.

This further states that, irrespective of the efficiency of the applicant, workers discriminate against minority applicants in order to avoid interaction with them and employers are prepared to pay a monetary penalty. The second is mathematical inequality. That's one of the two main reasons for the perceived discrimination on the employment market.