When the Labor Force Participation Rate Falls, the Average Wage

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?

A) Because workers who have the worst wage options are those most likely to leave the labor force.
B) Because educated workers are those most likely to leave the labor force.
C) Because the most experienced workers are those most likely to leave the labor force.
D) Because wages don't take into account salaried workers.
E) Because the U.S. has a negatively skewed wage distribution.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free