Consumer discrimination and the firm's demand for black labor |
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Authors: | George J. Borjas |
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Affiliation: | University of California, Santa Barbara, CA 93106, USA |
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Abstract: | This paper analyzes the firm's demand for labor in markets characterized by racial prejudice on the part of consumers. It is seen that the consumer discrimination concept leads to empirically testable implications regarding employment policies of firms. Moreover, unlike previous models of taste discrimination, it is found that racial discrimination need not be unprofitable; will not result in segregation of workers; and will not yield wage equality between black and white workers. |
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