Paying efficiency wages to reduce turnover may be profit-maximizing for companies,but it also contributes to ________ unemployment.
A) frictional
B) regional
C) cyclical
D) structural

Question

Quizplus · Accepted Answer

Paying efficiency wages may lead to a higher structural unemployment rate as it can make it hard for low-skilled workers to find work since the wage rate is higher.

Paying Efficiency Wages to Reduce Turnover May Be Profit-Maximizing for Companies,but