Employer Discrimination and Its Economic Impact

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Question:

Discrimination by employers:

tends to break down slowly because employers have many other options when hiring workers that will still maximize profits.

results in higher wages.

tends to break down quickly because employers are always looking to hire the most productive workers at the lowest wages in order to maximize profits.

is the worst kind of discrimination for minorities, as employers are able to restrict employment in these underrepresented groups the most.

Answer:

Discrimination by employers tends to break down quickly because employers are always looking to hire the most productive workers at the lowest wages in order to maximize profits. When employers discriminate against certain groups, they may overlook qualified candidates who could contribute positively to their business. As competition for talent increases, many employers recognize that hiring based on merit rather than bias can lead to better outcomes for their organizations. This economic incentive can drive the breakdown of discriminatory practices over time.