Cumulative disadvantage and cost-benefit analysis

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It is clear that one cannot infer risk preference from the kinds of jobs that people take. We note, for example that black people take jobs that are riskier than those that white people ordinarily take, but they are paid less for those risks. Clearly this is not a rational risk preference–the labor market is simply not functioning in the way economic theory suggest it ought.

From Oscar H. Gandy, Jr., Coming to Terms with Chance: Engaging Rational Discrimination and Cumulative Disadvantage, 158.

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Cumulative disadvantage and cost-benefit analysis

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