Suppose the government introduces a new requirement that all people on any form of state aid, such
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Question:
Suppose the government introduces a new requirement that all people on any form of state aid, such as food stamps or living assistance funding, actively seek work. As a result, the labor force participation rate increases. Assuming all else equal, what effect does that have on (real) wages and labor productivity in the long run? (Assume a vertical labor supply curve.)
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