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SebKom SebKom
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6 years ago
The "discouraged worker" effect occurs during recessions because
A) the labor force tends to grow during recessions.
B) the expected payoff from looking for work falls relative to the expected payoff from household production.
C) one spouse is discouraged by the job prospects of the other and decides to look for a job.
D) workers are discouraged by their depleted savings and decide to look for a job.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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