If all workers like nice working conditions and labor markets are competitive (such that workers are mobile and fully informed),then in equilibrium
A) no worker will be in a job that does not have nice working conditions.
B) workers will prefer to work in jobs with nice working conditions.
C) workers will prefer to work in jobs without nice working conditions.
D) workers will be indifferent between jobs with and without nice working conditions.

Question

Quizplus · Accepted Answer

In a competitive labor market with fully informed and mobile workers, any differences in working conditions will be offset by differences in wages. Therefore, workers will be indifferent between jobs with and without nice working conditions as the compensation will adjust to reflect the desirability of the working conditions.

If All Workers Like Nice Working Conditions and Labor Markets