National minimum wage Flashcards
1
Q
NMW
A
A wage rate that must be paid to all adult employees (As of April has increased to £7.20)
2
Q
Effect of NMW
A
If set below equilibrium in perfect, will have no effect
If set above will have unemployment effect
3
Q
Transfer pricing
A
Minimum payment needed to keep a factor
4
Q
Economic rent
A
Surplus involved in payment received
5
Q
Female wage discrimination
A
Women WR is 18% lower than men and 55% among top earners
6
Q
Ethnic wage discrimination
A
Black women w/ degree earns £4 per hour less than white male in London
7
Q
Effect of UK wage discrimination
A
Reduces net gains to work therefore less supply
