Th3.5: Wage Determination in Competitive and Non-Competitive Markets Flashcards
1
Q
What things do wage rates differ due to?
A
age, education, training, work experience, skill/talent, sex and ethnic background - the last two being illegal but still significant
2
Q
For the highest paid workers there will be…
A
a low supply and high MRP
3
Q
What does the immobility of labour mean?
A
that there may be excess supply in one area/occupation, causing low wages, and not enough workers in another, meaning high wages
4
Q
The lower the elasticity of supply/demand…
A
the greater the change in the real wage rate and the smaller the change in employment as a result of change in demand/supply for labour - the effect will also depend on the size of the change
