Suppose that the United States were to adopt, on a permanent basis, a wage subsidy to be

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Suppose that the United States were to adopt, on a permanent basis, a wage subsidy to be paid to employers who hire black, disadvantaged workers (those with relatively little education and few marketable skills). Analyze the potential effectiveness of this subsidy in overcoming

(a) labor market discrimination against blacks and

(b) pre-market differences between blacks and whites in the long run.

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