“Job discrimination may actually result from rational decision making on the part of firms and not because of prejudice.” Explain this statement

What will be an ideal response?

Discrimination may actually be the result of firms making rational, profit-maximizing decisions. Firms do this through the practice of statistical discrimination, or the use of statistical evidence of a certain group to determine future job performance. Firms might be hesitant to hire women or minorities due to certain group-wide performance. For example, the absence of successful women in the sciences may make certain employers concerned that women may not have the skill set necessary to succeed. Ultimately, firms make these estimations in an effort to hire the best employee possible and not out of prejudice, although it ultimately impacts women and minority groups negatively.

Economics

You might also like to view...

What is the percentage of income received by the upper quintile on line Z?

Economics

The primary advantage to selling pollution permits rather than using a fixed percent reduction for all firms is that:

A. enforcement costs are eliminated. B. the government can raise additional revenue. C. pollution reduction is accomplished in the least costly way possible. D. pollution is driven to zero.

Economics