Question

Does discrimination affects the market for Labor? Response needs to be at least four short paragraphs.

Answer 1

Discrimination can be defined as the avoidance of opportunities to earn for labour in the form of race, gender, religion, national origin, age etc

Loss of talent/skill sets: Discrimination in terms of as above said would discourage labors to improve skill sets which would lead to loss of talent

Lower employment levels: The discrimination leads to loss of jobs which increases unemployment levels

Lower wage levels and quality of life: All skilled labors are forced to work for lower wages because of discrimination. With the lower wages, the quality of life gets affected as the disposable income decreases.

Market inefficiency: With the loss of skill sets, lower wages, lower quality of life and high unemployment, the market would not be able to function efficiently which leads to inefficiency.