3.5.3 Wage Determination In Competetive And Non-competitive Markets Flashcards
1
Q
What is labour market equilibrium?
A
- occurs when the demand for labour is equal to the supply of labour
2
Q
What happens to the LS and LD when wages are higher?
A
Labour supply increases but labour demand will be low leading to an excess supply of labour = unemployment as now they have to clear the market
3
Q
What are the reasons for different wages in the same industry?
A
- experience
- level of responbility
- skills
- more anti-social hours
- working conditions
4
Q
What are the reasons for differences in wages in different areas?
A
- infrastructure
- cost of living
- transport
- demographics
5
Q
what are the cause of pay gaps?
A
- discrimination
- occupational segregation
- educational and occupational choice
- work experience and seniority
