ECON 2P03 Study Guide - Perfect Competition
13 Mar 2014
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Wage falls- equally talented players are paid less. Pay of favoured workers driven up (they will be get paid as opposed to equally talented francophone) If you discriminate, you get to work with the players you like but, you"ll be paying more and you"ll have less talented players on your rosters. - pay is lower and fewer are hired. Unprejudiced employers are winners: they get better players at a lower pay. As more unprejudiced employers enter, wages are going to start driving up and eventually they will equal to those of anglophone players. Employers may believe there"s really a difference between groups. For example, it may be on average. The problem with averages is that there are always numbers and below --- you"re judging an individual based on the average of an entire group. When you use an average to discriminate, you"re using statistical discrimination. -it is not based on prejudice, it is based on really bad information.
