New wage setting curves reveal key to reducing unemployment rates.
Wage setting curves are a different way to understand how people decide to work, especially in places where unions have a big influence. These curves show the relationship between wages and employment, and can help explain why there is unemployment. The level of wages depends on factors like how many people are working, how willing unemployed people are to work, and how much they get in benefits. Usually, when more people are working, wages go up. But sometimes, wages can go down as more people get jobs. This can lead to changes in how companies hire and fire workers. The researchers found that wage setting curves can have different shapes and can help us understand how the job market works.