Recent empirical evidence suggests that unemployed workers reservation wages decline as their spells of unemployment lengthen. That
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Recent empirical evidence suggests that unemployed workers’ reservation wages decline as their spells of unemployment lengthen. That is, the longer they have been unemployed, the lower their reservation wages become. Explain why this might be true.
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When a worker first becomes unemployed he or she may be optimistic about employment oppo...View the full answer
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Related Book For 
Modern Labor Economics Theory And Public Policy
ISBN: 9780132540643
11th Edition
Authors: Ronald Ehrenberg, Robert Smith
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