Workers unemployed as a result of wage rigidity are:
A)actively searching for a job to match their skills.
B)not eligible to receive unemployment insurance benefits.
C)waiting for a job to become available.
D)relocating to another part of the country as a result of sectoral shifts.

Question

Quizplus · Accepted Answer

Workers unemployed as a result of wage rigidity are waiting for a job to become available. Wage rigidity refers to a situation where wages are set above the market-clearing level, leading to a surplus of labor and unemployment. In such a situation, workers may be reluctant to accept lower wages, which results in them waiting for a job to become available rather than actively searching for a job to match their skills. Unemployment insurance benefits are typically available to workers who have lost their job through no fault of their own, including those who are unemployed due to wage rigidity. Relocating to another part of the country may be a result of sectoral shifts, but it is not necessarily related to wage rigidity.

Workers Unemployed as a Result of Wage Rigidity Are