In the taste-for-discrimination model, an increase in...

In the taste-for-discrimination model, an increase in employer prejudice against African-American workers would cause the discrimination coefficient to_______________________ and the demand curve for African-American labor to shift__________________________. a. Decrease; right. b. Decrease; left. c. Increase; right. d. Increase; left.

In the taste-for-discrimination model, an increase in employer prejudice against African-American workers would cause the discrimination coefficient to_______________________ and the demand curve for African-American labor to shift__________________________.
a. Decrease; right.
b. Decrease; left.
c. Increase; right.
d. Increase; left.

Key Concepts

Labor Demand Curve Shift

In labor market analysis, the demand curve illustrates the relationship between the wage rate and the number of workers hired. When discrimination increases the cost of employing a particular group (as signified by a higher discrimination coefficient), the demand for that group's labor decreases, resulting in a leftward shift of the labor demand curve.

Discrimination Coefficient

The discrimination coefficient is a quantitative representation of the extra cost that employers associate with hiring workers from a discriminated-against group. An increase in this coefficient indicates that an employer's level of prejudice has escalated, effectively making the cost of hiring from that group higher.

Employer Prejudice

Employer prejudice refers to the inherent bias or negative attitude that employers may hold against workers from certain demographic groups. In the context of the taste-based discrimination model, higher employer prejudice translates into a higher perceived cost when considering these workers for hiring.

Taste-Based Discrimination Model

This model in labor economics posits that employers have a 'taste' for discrimination, meaning they may be willing to incur a cost (or suffer lower profits) rather than hire workers from certain groups. This prejudice effectively increases the hiring cost for these workers, influencing both the employer's behavior and market outcomes.

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