The Persistence of High Levels of Unemployment, Especially in Parts

Multiple Choice

The persistence of high levels of unemployment, especially in parts of continental Europe, is explained in part by all of the following, except:

A) social and labour market policies that alter the costs and benefits of job search.
B) insider-outsider models of wage setting that keep wages above equilibrium levels.
C) the loss of human capital experienced by displaced workers.
D) certain features of the unemployment insurance regimes.
E) flexibility in the labour market.