Why do minimum wage laws in Italy and Spain result in a greater prevalence of workers...

Why do minimum wage laws in Italy and Spain result in a greater prevalence of workers being hired in unreported jobs "off the books" than do minimum wage laws in the United States?

		Workers in these countries prefer short-term employment contracts.
		The minimum wages in these countries are so low that workers typically feel they have to accept more than one job.
		The minimum wages in these countries are so far above the equilibrium wage that they have generated significant unemployment.
		Governments in these countries have designed labor market policies with the goal of making the official unemployment rate appear as low as possible.

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Expert Solution

Why do minimum wage laws in Italy and Spain result in a greater prevalence of workers being hired in unreported jobs "off the books" than do minimum wage laws in the United States?

The minimum wages in these countries are so far above the equilibrium wage that they have generated significant unemployment.

Option(C)

Rahul Sunny answered 1 year ago

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