What is statistical discrimination

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Answer based upon your knowledge of economics and class notes on "Differenes in Wages and Discrimination Make and "Wage Differenees - Tast for Discrimination, Relative Wage Mode and Statistical Discrimination", Chapter 9 from Women end the Economy: Family Work and ray.

(a) What is statistical Discrimination and why does it occur, Provide an example of statistical dis-eliminations. Is statistical dionimination likely to persist overtime or will it eventuly disappear. Explain

(b) If firm owners have a "Taste for Discrimination" but operate a perfectly competitive market. Is there a need for government intervention, Explain and demonstrate your argument graphically.

(c) Suppoee that the market demand for female workers is given by:

808_What is statistical Discrimination.png

and the eupply cur. of NNive American worbsa is given by: 0.0125N7 - 0.975

Graph the Labor aupply and demand curves for women itt this markt. (add)

ii. What is the quilibriuto Native-white relative wage ratio (grg) and the equilibrium number of women emplged? (308)

iii. Is there evidence of wage discrimination at this equilibrium? Explain

iv Does a Native... wage difference prove discrimination, Explain

v. Does lack of Native - white wage difference prove the abeace of diaoindeming firm? Explain.

Reference no: EM13136619

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