A wage subsidy would:
decrease the supply of labor, driving wages up and employment down.
decrease the demand for labor, lowering wages.
decrease employment by raising the wages paid by firms.
increase the demand for labor, increase the wages received by workers, and lower the wages paid by firms.
A wage subsidy would:
increase the demand for labor, increase the wages received by workers, and lower the wages paid by firms.
Wage subsidies are financial incentives provided by the government to employers to encourage them to hire more workers or to pay higher wages. By subsidizing wages, firms can afford to hire more employees, which increases the demand for labor. While the subsidy helps workers receive higher wages, it effectively lowers the cost of labor for firms, allowing them to pay less out of pocket than they would without the subsidy.