Asked by Ambrocia Ramirez on Apr 27, 2024

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Minimum wage laws, labor unions, and efficiency wages all generate unemployment by what common mechanism?

Efficiency Wages

Efficiency wages are wages set above the market equilibrium by employers, aiming to boost productivity by increasing worker satisfaction and reducing turnover.

Labor Unions

Organizations formed by workers to protect their rights, improve working conditions, and negotiate wages and benefits with employers.

Minimum Wage

The lowest legal salary that employers can pay to workers, established by government legislation.

  • Discern the role played by minimum wage legislation, labor unions, and efficiency wages in influencing unemployment statistics.
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Lindsay FlowersMay 01, 2024
Final Answer :
Wages being above the equilibrium level.