Question

What is the difference between an employer who has a "taste" for discrimination, versus an employer who "statistically discriminates"?

Answer 1

Economists discrimination has two models-Employers may have a taste for discrimination whereby they may refuse to hire a black person. However if they employ a black person they may pay him less than the other employees.As a result of this discrimination, the discriminated group suffers.Statistical discrimination occurs when the employers regard one group to be less productive than the other due to lack of information about individual productivity while hiring them for a job.Thus statistical distinctions take place on the basis of imagined information.

answered by: anonymous