Question
In the simple two-sector model of the effect of minimum wage laws that we have studied, there is a sector that is covered by the
In the simple two-sector model of the effect of minimum wage laws that we have studied, there is a sector that is covered by the law (the "covered sector") and another sector that is not covered by the law (the "uncovered sector"). In this model, an increase in the minimum wage rate is predicted to result in...
- A.an increase in employment in the uncovered sector, if there is a net migration to the uncovered sector
- B.a decrease in employment in the uncovered sector, if there is a net migration to the covered sector
- C.a decrease in employment in the uncovered sector, if there is a net migration to the uncovered sector
- D.an increase in employment in the uncovered sector, if there is a net migration to the covered sector
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Macroeconomics Principles Applications And Tools
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
7th Edition
978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234
