Summary
At a 1957 hearing on increasing the minimum wage, a northern U.S. Senator who favored the increase stated: Of course, having on the market a rather large source of cheap labor depresses wages outside of that group, too-the wages of the white worker who has to compete. Becker's book pointed out that the wage differential between black and white workers of a given ability and experience level is a measure of the remaining discrimination against black workers; the larger the differential, other things equal, the more discrimination black workers face.
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How Free Markets Break Down Discrimination
One of my favorite lines in the classic movie The Magnificent Seven comes when a traveling salesman and his partner offer to pay the local undertaker to haul a dead Indian to boot hill. The undertaker refuses. He'd like to oblige, he explains, but the townsfolk are so prejudiced against burying Indians alongside whites that he can't persuade his driver to haul the body. One of th...
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