Why are marginal workers unemployed: Low productivity or high opportunity cost of employment?

Puntos clave

• Low productivity alone does not fully explain marginal workers' unemployment, hinting at deeper issues.
• The opportunity cost of employment significantly impacts labor market participation for marginal workers.
• Evidence suggests that economic conditions influence both productivity and the opportunity cost faced by these workers.
• Clarifying the dynamics of marginal workers can inform policy aimed at reducing unemployment rates.