Question

What is the effect on the labor market of counting marginally attached workers as​ unemployed? If we count marginally attached workers as unemployed​ ______. A. the working dash age population increases B. the labor force participation rate rises C. the labor force participation rate falls D. the employment dash to dash population ratio falls

Answer 1

Answer:

C. the labor force participation rate falls

Explanation:

Marginally attached workers are not part of labor force, but if they are included and are unemployed then the labor which is actually participating will fall.

As in the labor participation rate = Working labor or simply employed labor divided by total labor force.

Thus, in this case with marginally attached labor, only denominator will increase in the equation.

Therefore, this will state that the labor force participation will fall as marginally attached is considered as unemployed.