What's it: Wage rigidity refers to a situation where wages are insensitive to changes in supply-demand in the labor market. For instance, when the unemployment rate is high, wages do not fall even though the demand for labor declines and
Labor Market
Labor Market: Types, How It Works, Key Factor Affecting It
What it is: The labor market is where the demand and supply of labor interact. That is an example of a factor market, which is a market for production factors transactions. In this market, businesses demand labor services offered by