The added worker effect is when A. workers increase their hours as the hourly wage increases....

The added worker effect is when

A. workers increase their hours as the hourly wage increases.

B. employers add more workers when product demand increases.

C. one spouse enters the labor market when the other spouse sees their job or hours cut during a downturn.

D. one spouse exits the labor market during a downturn.

Solutions

Expert Solution

The added worker effect refers to an increase in the labor supply of married women when their husbands become unemployed. There is an assumpyion that women are less attached to their labour market jobs than their married partners. When the partner becomes unemployed, it is only then that they come out for a job.

Ans C

Rahul Sunny answered 1 year ago

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