Why can consumer prejudice lead to persistent wage discrimination?
A) Consumer prejudice leads to employee and employer prejudice.
B) Majority consumers view the goods produced by the majority as different in kind than the goods produced by the minority.
C) Consumer prejudice will cease to exist in the long run.
D) Consumer discrimination leads to complete workplace segregation.
E) Different goods cannot command different prices in perpetuity.

Question

Quizplus · Accepted Answer

Consumer prejudice can lead to persistent wage discrimination because if majority consumers perceive the goods produced by the majority as superior or different in kind from those produced by the minority, they may be willing to pay a premium for the former. This can create a market dynamic in which employers are incentivized to hire more workers from the majority group, leading to persistent wage discrimination against minority workers.

Why Can Consumer Prejudice Lead to Persistent Wage Discrimination