This chapter considers the economics of discrimina-tion by

Chapter , Problem 9

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This chapter considers the economics of discrimina-tion by employers, customers, and governments. Now consider discrimination by workers. Suppose that some brunette workers do not like working with blonde workers. Can this worker discrimination ex-plain lower wages for blonde workers? If such a wage differential existed, what would a profit-maximizing entrepreneur do? If there were many such entrepre-neurs, what would happen over time?

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