The insider-outsider theory suggests that
A)insiders get lower wages but higher benefits than outsiders.
B)unemployment insurance leads to higher rates of unemployment.
C)unions seek high wages without causing firms to cut employment.
D)the minimum wage forces low-skilled workers to become unemployed.

Question

Quizplus · Accepted Answer

The insider-outsider theory suggests that unions, representing insiders, seek to maintain high wages for their members without causing firms to reduce employment, often at the expense of outsiders who are unemployed or not part of the union.

The Insider-Outsider Theory Suggests That