[U]nfounded prejudice is unstable in a competitive market for labor. Ah, if only this were true. This assumes the market is ultimately a meritocracy, and I don

[U]nfounded prejudice is unstable in a competitive market for labor. Ah, if only this were true. This assumes the market is ultimately a meritocracy, and I don't think the evidence supports that assumption. And even if it were, inefficiencies in a market can persist for a very long time. While conscious, ideological racism is less common today, unconscious racism is a virtually universal feature of human behavior, affecting all corners of the job market. Adam Smith's invisible hand isn't going to fix job discrimination.