What is the effect of a spilt labor market in which workers belonging to one race are paid less than those of a different race?

Answer 1

A split labor market, where workers of one race are paid less than those of another, creates economic disparities and can lead to increased social tensions and resentment between racial groups. This wage gap undermines the principle of equal pay for equal work, perpetuating systemic inequality and limiting economic mobility for the disadvantaged group. It can also result in reduced overall productivity and morale, as workers may feel devalued and demotivated, ultimately harming the broader economy.