A lot of sectors of the economy experience different kinds of discrimination. Due to discrimination, labor supply will be artificially reduced in higher-pay occupations populated by preferred workers, raising their wage rates and income.
Discrimination exist in a labor market if workers with the same economic characteristics, such as education, experience, and skill, are paid different amounts due to their race, gender, religion, age etc.
Discrimination often have an effect on demand and supply
Looking at demand, negative discrimination will result to employers reducing the expected value of employment of a specific group.
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