Public spending boosts wages for unskilled workers but raises unemployment.
The study looked at ways to help unskilled workers find jobs and earn more money. By investing in training for unskilled workers, their wages can go up and the pay gap between skilled and unskilled workers can shrink. However, this might lead to more unskilled workers being unemployed. Giving subsidies to companies to hire unskilled workers can also boost employment and pay for them, but it might make things harder for skilled workers. To balance things out, increasing subsidies for skilled workers can help keep everyone employed.