A new government policy is enacted that provides comprehensive, free retraining programs and job-placement assistance for unemployed workers, significantly improving their prospects of finding a comparable or better job. What is the most likely effect of this policy on the curve that represents the minimum wage firms must pay to ensure workers do not shirk their responsibilities?

Impact of Unemployment Benefits on Wage Setting

An increase in the psychological or physical costs associated with performing a job, such as a more stressful work environment, would cause the curve representing the minimum wage required to ensure employee effort to shift downward.