Empirically,the "added-worker" effect is ________ in magnitude than the "discouraged-worker" effect.

Question

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The added-worker effect refers to the phenomenon where an unemployed individual’s spouse enters or re-enters the labor force to compensate for lost income. The discouraged-worker effect refers to the phenomenon where an unemployed individual gives up looking for work, which decreases the labor force participation rate. Empirical studies have found that the added-worker effect is smaller in magnitude compared to the discouraged-worker effect. Therefore, the correct answer is C, smaller.

Empirically,the "Added-Worker" Effect Is ________ in Magnitude Than the "Discouraged-Worker