According to structural stagnationists, when workers lose their jobs in the tradable sector, they are pressured to:
A)increase their reservation wage.
B)keep their reservation wage the same as before their job loss.
C)lower their reservation wage.
D)lower their reservation initially, but out of regret, increase it.

Question

Quizplus · Accepted Answer

Structural stagnationists argue that when workers lose their jobs in the tradable sector, they face pressure to lower their reservation wage due to decreased demand for their skills and increased competition for available jobs, leading to a need to accept lower wages to secure employment.

According to Structural Stagnationists, When Workers Lose Their Jobs in the Tradable