Higher wages due to the minimum wage and the bargaining power of labor unions have contributed to the unemployment problem in most European countries.

Question

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Higher wages can lead to higher costs for employers, making it more expensive to hire workers. This can lead to a decrease in demand for labor and an increase in unemployment. Additionally, labor unions may negotiate higher wages and benefits for their members, which can make it difficult for employers to afford to hire new workers or retain current ones.

Higher Wages Due to the Minimum Wage and the Bargaining