Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 19 - Part VI - Earnings and Discrimination - Problems and Applications - Page 411: 9

Answer

Yes, this worker discrimination can explain wages for blonde workers.

Work Step by Step

Since the wage differential does exist, profit-maximizing entrepreneurs might be more inclined to hire blonde workers. This would shift the demand curve for blonde workers, thus increasing the number of blonde workers and their wages. With enough firms in the market, the wages for blonde workers would eventually be the same as brunette workers (and thus eliminate the wage discrimination).
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