Consider again the law that would require employers to provide the same package of nonwage benefits offered to full-time employees to part-time employees on a prorated basis. (For employees working 25 percent of the normal workweek, employers would pay for 25 percent of the benefit package offered to full-time employees, and so on.) Also, assume most part-time workers do not currently receive benefits. Holding output and capital constant, how would firms adjust the employment/hours mix of parttime workers?
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