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In a competitive market, which of the following is least likely to be the source of a persistent discriminatory wage differential? a. The customer b. The government c. The employer d. All of the answer choices could be the source of a persistent discriminatory wage differential. Efide Feceiback Incorrect

Ask by Pritchard Lewis. in the United States
Mar 10,2025

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In a competitive market, employer discrimination is least likely to cause persistent wage differences.

Solución

1. In a competitive market, if an employer shows discrimination (e.g., by paying lower wages to a specific group), this practice imposes a cost on the firm. 2. Competing firms that do not discriminate can hire workers at lower costs or more efficiently use all available talent. 3. Over time, market competition tends to eliminate employer discrimination because firms that discriminate become less competitive and are driven out of the market. 4. In contrast, discriminatory practices embedded in customer preferences or government policy are less easily counteracted by market forces and thus can persist. Therefore, the source least likely to create a persistent discriminatory wage differential is: \( \textbf{c. The employer} \)

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The Deep Dive

In competitive markets, discriminatory wage differentials often arise from biases held by customers, employers, or even government policies. For instance, if customers prefer to purchase goods and services from a particular demographic, it could lead to wage disparities for workers in that sector. However, it’s essential to recognize that government interventions, like minimum wage laws, can sometimes help level the playing field. Another interesting aspect is that some employers might not even realize they're perpetuating wage differentials due to unconscious biases. It’s crucial to conduct regular audits and training to address these issues proactively. Ensuring equal pay for equal work not only promotes fairness but also improves overall workplace morale and productivity!

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