Research indicates that worker morale is a major reason wages are not reduced during recessions.

Question

Quizplus · Accepted Answer

Studies have shown that reducing wages during a recession can have a negative impact on worker morale and productivity. Additionally, workers may feel that their efforts are not valued and it could lead to higher turnover rates. Therefore, employers may choose not to reduce wages in order to maintain positive morale and retain valuable employees.

Research Indicates That Worker Morale Is a Major Reason Wages