Abstract
A. Becker proposed that discrimination be measured by a coefficient, di, which describes the extent to which employers impute to a discriminated class of workers, a wage rate which exceeds their money wage rate. If black workers are discriminated against, their imputed wage is Wb(l + di), where Wb is the money wage actually paid to blacks. Letting W,, be the money wage paid to workers who are not discriminated against, the necessary condition for cost minimization (including psychic as well as money costs) is:
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