One reason unemployed people have a harder time getting hired than do similar employed workers is because looking for a new job is:
A) adverse selection.
B) signaling.
C) moral hazard.
D) the principal-agent problem.

Question

Quizplus · Accepted Answer

Unemployed workers may have a harder time getting hired because of adverse selection. This means that employers may view them as less desirable candidates because they assume that the reason for their unemployment is related to their skills, work ethic, or other negative factors. Employers may prefer to hire currently employed workers who they assume have better skills and work habits.

One Reason Unemployed People Have a Harder Time Getting Hired