Labour Economics
Discrimination can be a systemic reason for inequality in the labour market (and society in general).
Consider a society where employers exhibit distaste for non-white workers even though they are identical to white workers in terms of productivity. Using an appropriate numerical example explain how this distaste disadvantages the workers who are discriminated against.
Discuss the economic efficiency of market outcomes when employer prejudice exists in a society. Compare and contrast your answer to the economic efficiency of market outcomes where inequality is driven by trade / immigration / technological change instead of discrimination. Consequently, how might the appropriate policy responses differ when inequality is the result of discrimination rather than trade / immigration / technological change?