Unemployment that occurs because the wages for an employee rise above what a company is willing to pay. For example, if a company is willing to pay $30,000 per year for a job but potential employees will not accept less than $40,000, the job will go unfilled. Some economists claim government interventions such as minimum wage laws and unemployment benefits cause unemployment because they raise the cost of hiring an employee, making companies less likely to create jobs. Other economists dispute this idea.
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