Chapter Learning Objectives

  • Understand the basic stylized facts concerning the different labor-market outcomes of alternative worker groups classified by their race, gender, and ethnicity.
  • Understand the precise definition of discrimination as it is used by economists.
  • Recognize the distinction between premarket and market discrimination, and how each of them affects labor-market outcomes.
  • Know how prejudice is modeled as a distaste and hence is amenable to tools of microeconomic analysis.
  • Explain the principles underlying Becker’s models of employer, coworker, and consumer discrimination.
  • Understand the modern approaches to discrimination that are based on imperfect information, statistical discrimination, job search, and self-fulfilling prophecies.