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From Mastering the National Admissions Test for Law by Mark Shepherd, page 144, last para:

...Second is the idea that the experience of long- term unemployment may be less stigmatising, and hence less stressful and health damaging, in areas where unemployment rates have been traditionally high. Where the chances of unemployment are perceived as higher and jobs, once lost, more difficult to regain, being unemployed may be seen as more of the norm, rather than a defi ciency of the individual. Conversely, in more prosperous areas, with lower unemployment, being unemployed for a long time may be perceived as an aberrant and personally stigmatising situation...

Question 25, p.145:

Which of these situations can be gathered to be most likely to be encountered?
(a) Under- reporting of unemployment in areas of low long- term unemployment
(b) Under- reporting of unemployment in areas of high long- term unemployment
(c) Over- reporting of unemployment in areas of low long- term unemployment
(d) Over- reporting of unemployment in areas of high long- term unemployment
(e) None of the above

From the answer key, p.236:

(a) CORRECT. It is stated that ‘in more prosperous areas, with lower unemployment, being unemployed for a long time may be perceived as an aberrant and personally stigmatising situation’. This implies that people are likely to under- report unemployment in such areas.
(b), (e) INCORRECT. See (a).
(c), (d) INCORRECT. The article does not address the issue of over- reporting of unemployment.

Why's (d) wrong? Doesn't the bolded prove it? Can't the answer key's argument be reused to argue (d)?

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No, it can not. An that is because the situations are not symmetrical.

If I feel bad about reporting that I am unemployed, I may decide not to do it (under-reporting.

On the other hand, even if being unemployed is not bad, why would I report myself as unemployed when I have a job (over-reporting)?

The fact that it is seen as the norm, and not as my personal failure, does not make it something I want to do!

Now, if the author would say that being unemployed is seen as a good thing, something that gives me status, yes, maybe d) is conceivable.

The bold part shows that there is nothing to stop people from reporting as unemployed when they are unemployed. But that is not over-reporting.

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