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Historically, Young French Workers (Under Age 25) Have Had Relatively

Question 101

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Historically, young French workers (under age 25) have had relatively high unemployment rates: 21 percent in 2005. In 2006, the French government proposed to allow employers to fire young employees without cause (a labor restriction). How should this policy improve employment prospects for young French workers? What would the impact on their wages be?

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Labor demand is a function of the margin...

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