Workers in the textile industry are laid off during a recession because they are unwilling to accept a wage cut, unless they know that workers in other industries are receiving similar cuts. This example is consistent with the

Question

Quizplus · Accepted Answer

The behavior of the textile workers is consistent with the relative-wage explanation of unemployment, which suggests that workers are more likely to accept wage cuts if they perceive them as consistent with the wages of workers in other industries.

Workers in the Textile Industry Are Laid Off During a Recession