When interferences in the labour market raise the wage above the equilibrium level,employers may discriminate because there are more job applicants than jobs.

Question

Quizplus · Accepted Answer

When the wage is set above equilibrium due to interference in the labor market, there is often an excess supply of workers for the available jobs. In this situation, employers may discriminate among job applicants as they have more options to choose from. Discrimination may occur based on characteristics such as race, gender, age, or education level.

When Interferences in the Labour Market Raise the Wage Above