Which of the following is not a source of downward wage
rigidity?
A. Unions appear to prefer layoffs to wage reductions, as the
former affects only workers without seniority, while the latter
would affect all workers.
B. Firms appear to prefer layoffs to wage reductions, as the
former allows the firm to "hoard" workers in whom they have
invested specific training.
C. implicit contracts between employers and their workers
D. Layoffs are discouraged due to the method used to finance...