Business and labor market regulations contribute to inequality via:

Question

Quizplus · Accepted Answer

Informality in the labor market, where workers are employed in conditions without formal contracts, benefits, or protections, can contribute to inequality by creating a divide between formal and informal sectors. This can lead to disparities in income, job security, and access to social protections. Trade and monetary policies, while impactful on the economy, are not directly related to the mechanisms through which business and labor market regulations contribute to inequality in the context provided.

Business and Labor Market Regulations Contribute to Inequality Via