Labor market flexibility influences outcomes from "summary" of EBOOK: Macroeconomics by Rudiger Dornbusch,Stanley Fischer,Richard Startz
Labor market flexibility refers to the ease with which workers can be hired and fired, the ability to adjust wages based on market conditions, and the availability of part-time and temporary work options. This flexibility has a significant impact on economic outcomes. When labor markets are rigid, with strict regulations on hiring and firing, it becomes difficult for firms to respond quickly to changes in demand. This can lead to higher unemployment rates and slower economic growth. On the other hand, flexible labor markets allow firms to adjust their workforce more easily, leading to better matching of workers with jobs. This can ...
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