Intervening with Labour market to reduce wage differentials

Question 1

How do the government intervene in labour markets (4)

Answer 1

National minimum wage
employment protection
regulating Trade Unions - limit bargaining power
investing in education

Question 2

what are the advantages to minimum wage

Answer 2

improve wage level for poorest peopl

Question 3

what are the disadvantages to minimum wage

Answer 3

could cause market failure where there is excess supply

Question 4

what are the advantages to employment protection

Answer 4

No discrimination everyone fairly paid

Question 5

what are the disadvantages to employment protection

Answer 5

difficult to regulate

Question 6

what are the advantages to regulating trade union

Answer 6

government can lower the wage levels

Question 7

what are disadvantages to regulating trade union

Answer 7

union has less power to make change leading to strikes etc

Question 8

what are the advantages to invest in education

Answer 8

higher qualifications meaning higher wages

Question 9

what are the disadvantages to investing in education

Answer 9

more people in school for longer meaning less working population