When interferences in the labor market raise the wage above the equilibrium level,employers may discriminate because there are more job applicants than jobs.

Question

Quizplus · Accepted Answer

When the wage is above the equilibrium level due to interferences, there will be more job applicants than jobs available. This gives employers more power to discriminate and choose certain groups of workers over others.

When Interferences in the Labor Market Raise the Wage Above