Which factor does NOT contribute to institutional unemployment?

Institutional unemployment refers to a type of unemployment that arises from various structural issues within the economy or the job market rather than from cyclical factors or a lack of jobs. These issues can include factors like labor market regulations, cultural practices, and specific institutional practices that affect job seekers and employers.

Job seekers moving locations is often related to geographical and mobility factors in labor markets. When individuals relocate for work, it typically reflects a response to job opportunities available in different areas and is commonly associated with frictional unemployment, which occurs during transitions between jobs, rather than institutional unemployment. Frictional unemployment is generally temporary and not a result of the structural or institutional factors at play.

In contrast, lack of sufficient housing directly impacts a job seeker's ability to relocate for a job, thus contributing to institutional unemployment. Low differences in benefits and wages can create a stagnation in job mobility, while closed shop practices can restrict entry into certain job markets, both of which reinforce institutional barriers to employment. Therefore, the only choice that does not align with the characteristics contributing to institutional unemployment is the mobility of job seekers.