Suppose the government proposes to increase the level of UI benefits for unemployed workers. A particular industry

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Suppose the government proposes to increase the level of UI benefits for unemployed workers. A particular industry is now paying efficiency wages to its workers in order to discourage them from shirking. What is the effect of the proposed legislation on the wage and on the unemployment rate for workers in that industry?
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Labor Economics

ISBN: 978-0073523200

6th edition

Authors: George J. Borjas

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