dp6

Question 1

Factors affecting wage growth

Answer 1

• Weaker labour productivity:
• Higher level of immigration
• Unemployment
• Declining union membership

Question 2

Weaker labour productivity:

Answer 2

rises in efficiency appear to come form use of capital rather than labour resources = new technology. Therefore owners will receive increase incomes relative those of unskilled workers.

Question 3

Immigration:

Answer 3

means increase in supply for labour thus slow wage growth

Question 4

Factors leading to labour shortage

Answer 4

can occur in any economy when demand for labour exceeds supply and unemployment rate is low