Response be different in the short versus long run

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The new requirements that (most) firms provide health insurance to workers can be thought of as increasing the costs of labor. What kinds of industries will be more likely to respond with large decreases in employment in response to these rules? How will the response be different in the short versus long run? Consider the Hicks-Marshall laws in your answer. [Note: technically, the elasticity of labor demand has to do with changes in hourly wages while the health care laws generally just increase the cost of hiring a worker for a minimum number of hours. However, for this question, just assume that the health insurance requirement is equivalent to a wage increase].

Reference no: EM131005932

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