Asked by Dalvin Mitchell on Jul 01, 2024

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Explain the role that consumers play in perpetuating discrimination in labor markets.

Labor Markets

Markets where labor services are exchanged for wages; involves the interaction of employers (demand for labor) and workers (supply of labor).

Discrimination

Unfair or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex, in various settings including employment, housing, and access to services.

  • Recognize the role of consumers in perpetuating discrimination in labor markets.
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Yasmena MawledJul 02, 2024
Final Answer :
Consumers are able to exercise their biases when they purchase goods and services. For example, if consumers prefer to have female personal trainers than male personal trainers, then firms may respond to these preferences by paying a higher wage to attract female personal trainers. The higher wage paid to women based solely on their gender (or the lower wage paid to male trainers based solely on their gender) would be an example of discrimination driven by consumer preferences.