Structural unemployment can be caused by:
(i) efficiency wages.
(ii) union-determined wages.
(iii) minimum wage laws.
(iv) job protection regulations.
A)(i), (ii), and (iv)
B)(ii) and (iii)
C)(i), (ii), (iii), and (iv)
D)(ii), (iii), and (iv)

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills that workers offer and the skills demanded by employers. This mismatch can be exacerbated by factors that make labor markets less flexible, such as efficiency wages (wages set above the market-clearing level to increase productivity), union-determined wages (which can be higher than market wages), minimum wage laws (which set a floor for wages), and job protection regulations (which can make it costly for employers to fire workers, thus making them hesitant to hire). All these factors can contribute to structural unemployment by making it harder for the labor market to adjust to changes in demand for labor.

Structural Unemployment Can Be Caused By