Geographic immobility in the labor force results in
A) homogeneous wage rates.
B) homogeneous unemployment rates.
C) local labor markets which reach equilibrium quickly and efficiently.
D) persistent wage and unemployment differentials among different regions of the country.

Question

Quizplus · Accepted Answer

Geographic immobility in the labor force means that workers are unable or unwilling to move to regions with higher wages and better job opportunities. This results in persistent wage and employment differentials among different regions of the country, as the supply of labor in areas with high unemployment remains high, leading to lower wages. Conversely, in areas with low unemployment, the demand for labor is high, leading to higher wages. Therefore, there is no homogeneity in wage rates or unemployment rates. Local labor markets do not reach equilibrium quickly and efficiently as a result of geographic immobility.

Geographic Immobility in the Labor Force Results in