In the taste-for-discrimination model, an increase in the prejudice of employers will decrease the demand for African-American workers, lower the African-American wage rate, and lower the ratio of African-American to white wages.

Taste-For-Discrimination

A concept in economics referring to preferences or biases that lead to discriminatory behavior or practices in the labor market or product choice.

African-American Workers

Individuals of African descent who are part of the labor force in various sectors of the economy.

Wage Rate

The standard amount of pay given to workers per unit of time, often per hour or year.