Market characterized by sticky wages


Question:

Consider a proposal requiring all employers to provide each worker with health insurance. if a proposal would require all employers to give each worker health insurance, and as a result employeers costs increased by 5,000 and workers value these benefits by 15,000. therefore there will be lower monetary wages, firms will pay less total compensation, and employeement will rise - however what will happen if the market is characterized by sticky wages?

Solution Preview :

Prepared by a verified Expert
Macroeconomics: Market characterized by sticky wages
Reference No:- TGS02097358

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)