Unemployment – reasons (2) On the supply side: 1/ Inadequate education and skills (not responding to business needs) 2/ High reservation wages – reservation wages are individual thresholds for each individual, in a given time and for a given job 3/ Unemployment benefits – the higher unemployment benefits are, and the longer one is entitled to these, the lower the incentive to start a job 4/ Generous social safety net – e.g.
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