Governments use wage subsidies to maintain employment in times of economic recession, to encourage firms to hire

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Governments use wage subsidies to maintain employment in times of economic recession, to encourage firms to hire and train specific groups of workers such as low-income workers, women, and students and to stimulate employment in certain regions or sectors of the economy. What effect would a wage subsidy provided to a particular sector of the economy have on the wage that workers receive and on employment in the total labor market, the covered sector, and the uncovered sector?

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Related Book For  answer-question

Microeconomics

ISBN: 9781292215624

8th Global Edition

Authors: Jeffrey Perloff

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