Most labor economists believe that the supply of labor is ______ elastic than firms' demand for labor, and therefore ______ bear most of the burden of a payroll tax.

Question

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Most labor economists believe that the supply of labor is less elastic than firms' demand for labor, which means that workers are more affected by changes in wages or taxes than firms. Therefore, workers are likely to bear most of the burden of a payroll tax.

Most Labor Economists Believe That the Supply of Labor Is