Theme 3.5

Question 1

What does the demand curve for labour show?

Answer 1

The demand curve for labour shows the ​quantity of labour that employers would wish to hire at each possible wage rate.

Question 2

What is MRP (marginal revenue product)?

Answer 2

The extra revenue generated by an individual worker.

Question 3

What is the demand for labour determined by?

Answer 3

The MRP. The higher the MRP, the higher the demand for workers. Due to diminishing marginal productivity, in the short run increasing the number of workers will initially increase MRP, but will then cause it to decrease.

Question 4

What two factors cause the demand for labour to be downwards sloping?

Answer 4

1) In the long run, all factors of production are variable, and therefore high wage rates will encourage businesses to use machines rather than workers.
2) In the short run, firms have fixed levels of capital and so diminishing marginal productivity means adding extra workers gives a lower return, so to employ extra workers the wage rate will have to fall.

Question 5

What is the equation for marginal revenue product?

Answer 5

Marginal output x price, or simply just the difference in total revenues.

Question 6

How is the demand for labour derived from demand?

Answer 6

Firms hire workers in order to produce goods to meet their aim, usually of making a profit. Therefore, the demand for labour is derived demand as it is derived from demand for the product the labour produces. Businesses only want the worker for as long as people are willing and able to buy the product they produce.

Question 7

What factors influence the demand for labour?

Answer 7

-Wage rates
-Demand for the product
-Prices of other factors of production
-Wages in other countries
-Technology
-Regulation

Question 8

How does the wage rate influence demand for labour?

Answer 8

​A wage is the price of labour and so has the same influence on demand for labour as price has on the demand for a product. As wage rates increase, demand for labour contracts since the MRP of labour must be higher for it to be worthwhile employing more people, so less people are employed.

Question 9

How does the demand for the product influence demand for labour?

Answer 9

Since labour is a derived demand, if there is no demand for the product, there is no demand for the labour. Firms won’t employ people if the goods they make aren’t going to be sold and make a profit. An increase in demand for the product leads to an increase in demand for labour. This is linked to the concept of MRP: an increase in output or price of a good will increase demand for the labour that produces that good.

Question 10

How does the price of other factors of production influence the demand for labour?

Answer 10

​If machinery and equipment becomes cheap, people will switch machinery for labour and therefore the demand for labour will fall.

Question 11

How do wages in other countries influence the demand for labour?

Answer 11

If wages are lower in other countries and therefore wages in the UK are relatively high, people will be employed in other countries as it represents a lower cost for businesses. This means that demand in the UK is low.

Question 12

How does technology influence the demand for labour?

Answer 12

Improvements in computers and technology means that many jobs have been lost with the work being done by machines. This means that there is less demand for labour, but demand for labour in technological based industries is increasing. ​By 2040, about 47% of jobs could be lost to technology.

Question 13

How does regulation influence the demand for labour?

Answer 13

​As laws are passed some jobs disappear, such conductors, whilst other jobs are made. High regulation within the labour market is likely to discourage firms from hiring since it can be very costly and time-consuming so this will reduce demand for labour in these areas. ​France is a country that used to have high levels of labour regulation and this is something the new president, Emmanuel Macron, is trying to change​.

Question 14

How can the state of the economy influence demand for labour?

Answer 14

This is because this also impacts the demand for the product. When the economy is in a recession/slump, there will be low demand. Furthermore, businesses confidence relates to the expected state of the economy in the future, and workers may be laid off or at the least firms will employ less new workers as they’re worried about a lack of future growth.

Question 15

What is the price elasticity of demand of labour?

Answer 15

This is the ​responsiveness of the quantity demanded of labour to the wage rate​.

Question 16

What factors affect the PED of labour?

Answer 16

● It is ​directly correlated to the price elasticity of demand for the product the labour produces. If the good is elastic, then a rise in wages and hence a rise in prices for consumers will have a large impact on the quantity the business sells. This will mean that the business will reduce the number of people it employs, in order to help it make a profit.
● It is affected by the ​proportion of wages to the total cost of production​: if wages are a huge proportion of costs, then an increase in wages will increase costs massively and so there will be a large fall in demand for labour hence it will be elastic.
● If there are many ​substitutes​, such as machinery and labour in other countries, then the demand will be elastic. This means high skilled jobs tend to be more inelastic than low skilled jobs as the labour cannot be easily replaced.
● Time also plays a role. In the long run, it is more elastic as machinery can be developed and jobs can be moved whilst in the short run firms have to employ workers and redundancy payments can be expensive.

Question 17

What is the supply of labour?

Answer 17

The supply of labour curve shows the ​ability and willingness of people to make themselves available to work at different wage rates.

Question 18

What factors influence the supply of labour?

Answer 18

-Wages
-Population and distribution of age
-Non-monetary benefits
-Education/training
-Trade unions/barriers to entry
-Wages and working conditions of other jobs
-Legislation

Question 19

How do wages influence the supply of labour?

Answer 19

The supply of labour curve for an individual is a backward bending curve: an increase in wages will lead to an increase in hours worked at first but beyond a certain point, it will lead to a decrease in hours worked. However, we are concerned with the supply curve for a particularly occupation; this is more likely to be the typical upward sloping curve. Firms can increase the number of hours worked by its workforce in two ways: it can increase the number of hours by its existing labour force or it can recruit new workers. Therefore, although an increase in wage rates may not increase the number of hours worked by existing labour, it will increase the number of workers. This is because new workers may join from other industries or from being unemployed.

Question 20

How do demographics influence the supply of labour?

Answer 20

A high population will mean there is a large supply of labour. The distribution of age is important as there needs to be many people of high working age to ensure there is lots of labour. Migration plays a role in determining the workforce, since many migrants are of working age and come to the UK to work.

Question 21

How do non-monetary benefits influence the supply of labour?

Answer 21

Supply of labour will increase if there is high job satisfaction, for example in vocational jobs. Some jobs are attractive because they are close by or in an area with good social life, such as London, require little commuting or are near friends and family. Similarly, some jobs offer perks such as free private healthcare etc. which will increase supply. Factors such as holiday, hours of work, flexibility and opportunities for promotion also play a significant part.

Question 22

How does education/training influence the supply of labour?

Answer 22

​More educated workers means there is a higher supply of workers. This is particularly important for some industries which require qualifications. Occupations which require high levels of education may suffer from lower supply of labour compared to low skilled jobs.

Question 23

How do trade unions and barriers to entry affect the supply of labour?

Answer 23

Trade unions may be able to restrict the supply of labour by introducing barriers to entry, for example you have to have a degree for teaching.

Question 24

How do wages and conditions of other jobs influence the supply of labour?

Answer 24

​If many jobs in a local area are considered to be unpleasant and offer low wages, then supply for alternatives will be higher.

Question 25

How does legislation influence the supply of labour?

Answer 25

The government rules can affect supply of labour, for example school leaving age and the retirement age.

Question 26

How does the level of government spending and tax affect the supply of labour?

Answer 26

High tax rates and high welfare benefits can reduce incentives and means there is a lower supply. This affects the entire workforce, and so therefore will have an impact on individual occupations.

Question 27

What is the elasticity of supply of labour?

Answer 27

This is the ​responsiveness of supply to a change in wage rates​.

Question 28

What factors affect the price elasticity of supply of labour?

Answer 28

-Level of qualification or training needed
-The availability of labour in substitute markets
-Vocational nature of jobs (many teachers are teachers because they love teaching, not because of what the salary is)
-Time scale: in the long term elasticity rises.
-Level of unemployment- high unemployment means a more elastic supply as firms can increase the number of workers without a large wage increase.

Question 29

Why is the supply of labour curve usually upwards sloping? (Substitute effect)

Answer 29

This is because of the trade off between income and leisure, and the rising opportunity cost of not working an extra hour as wages increase. Therefore, workers will usually feel more inclined to work more hours if the wage is higher, because the high wage outweighs the possible leisure benefits that hour could hold out of work. This causes the demand curve to be upwards sloping. This is known as the substitute effect.

Question 30

Why may the supply of labour curve sometimes be backwards bending?

Answer 30

This is due to the income effect. As a result of a rise in real income, an individual’s demand will also rise, and this includes demand for leisure (time out of work). This means after a certain point, the income affect will take over from the wage effect the the supply of labour curve will begin to bend backwards.

Question 31

What are non-pecuniary benefits?

Answer 31

These are benefits which are offered to workers which aren’t financial in nature, such as social facilities (e,g a free gym). These will increase job satisfaction, and therefore mean workers may be more willing to work for a lower wage than if these factors didn’t exist.

Question 32

How can immobility cause market failure in the labour market?

Answer 32

This is because labour is not a perfectly free market.
● They can suffer from ​occupational immobility where workers find it difficult to move from one job to another because of a lack of transferable skills. It is particularly difficult in the short term when workers need to get new training but in the long run it may only be possible at a high cost.
● Moreover, they can suffer from ​geographical immobility where they find it difficult to move from one place to another due to the cost of movement, family etc. There may be no jobs available in Glasgow, but jobs in London. Unfortunately, someone from Glasgow will struggle to get a job in London as they may not know about the vacancies, it would be expensive to attend interviews and they would have to leave their family behind. Housing is also a big issue because people may not be able to afford to buy a house in their new area. They may also struggle if they need to find social housing and it is difficult for young people, since they often do not have the money to move out of their parents’ home. In general, those on lower incomes are more geographically immobile.
● Immobility can mean that there can be excess supply ​of labour in one area/occupation and excess demand ​in another. Even if wages are higher where there is excess demand, people will be unable to leave where there is excess supply to get a job in that area/occupation because of their immobility.

Question 33

How does the UK suffer from excess demand for labour (market failure)?

Answer 33

The UK suffers from a severe skills shortage and this could cost £90bn a year following Brexit. There are four million too few high skilled people but six million too many low skilled people. Engineering is one industry suffering particularly badly from skills shortages.

Question 34

What is the marginal cost of labour?

Answer 34

The marginal cost of employing labour is the change in total labour costs from employing one extra worker

Question 35

How is the wage determined in perfect competition?

Answer 35

In a perfectly competitive labour market, we make the same assumptions as in a perfectly competitive product market. Therefore, wages are determined purely by demand and supply and all workers are paid the same. If workers were not paid the same, they would simply move somewhere else where the wage rate in the industry was higher. For example, a waiter in Liverpool would move to be a waiter in Portsmouth if the wage rate was higher. This would reduce supply and lead to an increase in wages in Liverpool, and increase supply and lead to a fall in wages in Portsmouth.

Question 36

What factors are assumed to be true in perfect competition for labour?

Answer 36

-Workers are homogeneous
-Perfect knowledge of wages and job opportunities
-There is a complete mobility of workers
-There are many firms and workers in the market

Question 37

Why may wage rates differ within an occupation?

Answer 37

-Age
-Education
-Training
-Work experience
-Skill/talent (differences in labour productivity)

-Sex
-Ethnic background

These last two are illegal but average wages suggest that this still can be an issue.

Question 38

What causes differences in wages between occupations?

Answer 38

-Compensating wage differentials. Jobs that are less fun or more dangerous tend to pay more than a job which is more fun and requires an equal skill level, as otherwise workers would simply choose the more fun job.
-Trade unions
-Reward for human capital
-Artificial barriers to labour supply (e.g professional exams)

Question 39

Why do monopsonies not set the wage where demand equals supply?

Answer 39

In a monopsony market, there is only one buyer of the labour. In this situation, businesses know that if they want to increase their labour force they will have to increase the wage they offer and, just like with monopsony product markets,an increase in the wage for one increases the wage for all. Therefore, the MC curve is above the supply curve (AC) of labour because it costs more to employ an additional worker than the average cost of labour. A firm will determine how many workers to employ where the cost of employing them is equal to the value of that worker to the company. They employ where MC=D (as this is where MC=MRP) at Q1 and at this output, they will pay their workers W1 (determined by the S curve). Compared to a perfectly competitive market (which would produce at W2Q2), they employ ​less people at a lower wage rate​.

Question 40

What is a trade Union?

Answer 40

A trade union is an organisation with members who are usually workers or employees, which protects the rights and pay of workers through a process of collective bargaining.

Question 41

What are the two ways a trade Union can increase wage?

Answer 41

-Firstly, they could set barriers of entry which would reduce supply. ​Teachers’ unions lobbied for a rule which means that all teachers must have degrees​.

-Alternatively, they could set wages at a specific wage and ensure workers are not prepared to work for less, creating a kinked supply curve as seen in the diagram (the grey line). Supply is perfectly elastic up to output of QS and if the company wanted to employ more than this, they would have to increase wages further. The firm will employ where supply is equal to demand, at QDW2. Both of these methods will lead to ​higher wages but cause a fall in employment​ from the perfectly competitive equilibrium of Q1W1​.

Question 42

How has the government worked to reduce the power of trade unions?

Answer 42

The government have been able to reduce the power of trade unions through acts which have introduced postal ballots, outlawed secondary picketing, restricted the size of the picket line and forced unions to provide 14 days’ notice of action. The Trade Union Act 2016 was the most recent act, and this included a clause saying that at least 50% of people must vote in the ballot; the most recent teachers union ballot only had 28% voting turnout​.

Question 43

What is a bilateral monopoly?

Answer 43

It is possible for there to be both monopoly and monopsony in a labour market, called a bilateral monopoly

Question 44

How do trade unions work to set a price in a bilateral monopoly? (Diagram on PMT notes)

Answer 44

The firm is a monopsonist and wants to employ at Q2W2. However, the union may decide to set a minimum wage at W1 and ensure that there is no one willing to work below this price, creating a kinked supply curve. The new MC and AC curves are the purple curves. In this situation, there is a battle going on between the two parties. The ​wage that is set will depend on the relative bargaining strength of both​. This is dependent on a number of factors, including the size of the union and the strength of the economy.

In a time of economic recession and unemployment the unions may have less bargaining power and wage is most likely to be down at W1. In times of full employment, they may have the power to influence and wages could be at W3.​ Unions can have a positive impact on both wages and the number of people employed​: they are able to increase wages to W3 without negatively impacting the number of workers. This increase in wages and employment is able to make the economy more efficient.

Question 45

Why is the MC above the AC of labour?

Answer 45

If the monopsonist wants to attract more workers to the firm, then they will have to pay a higher wage to increase the supply of labour. This means the MC (and hence the AC) of labour is always increasing

Question 46

What do trade unions offer for workers?

Answer 46

-They protect and improve the wages for their workers
-Protect workers against unfair dismissal + improving job security
-Protect pension rights
-Improve working conditions
-Allow for better education and training

Therefore, unions do not only strike due to wage issues, but a range of other factors as well.

Question 47

How have the number of strikes changed?

Answer 47

Current strike figures are very low in comparison to the 1970s/80s, with an equivalent of 30million working days being lost to strikes in 1979. This was due to wages not being increased with inflation in an attempt to control inflationary pressures.

Question 48

How many people in the UK are currently involved in trade unions?

Answer 48

• In 2022, just over 6.4 million people were registered as members of a trade union

• The percentage of employees that were members of a trade union in the UK fell from 32% in 1995 to 24% in 2019

Question 49

What conditions will cause trade unions to be most likely to be successful?

Answer 49

• Unions will have more success in raising wages for their members if the demand for labour is relatively wage inelastic
• Unions also more influential when they represent a high % of all workers in a given industry/occupation
• High profitability of the employer
• Pay might also rise if unions and employers agree a pay deal based on success in lifting productivity

Question 50

What are the current labour market issues?

Answer 50

-Skills shortages
-Young workers
-Retirement
-Wage inequality
-Zero-hour contracts
-The ‘Gig-economy’
-Migration
-There are also issues over the correct level of unemployment, underemployment, the minimum wage, conditions in work etc.

Question 51

Why are skills shortages an issue for the labour market?

Answer 51

The UK suffers from geographical and occupational immobility, which means that even if there are enough engineers, there aren’t enough engineers in certain areas.

Question 52

Why are young workers an issue for the labour market?

Answer 52

Workers who join the workforce during recessions tend to receive lower lifetime earnings than those who enter the labour force in better times. Youth unemployment can be a particular issue; during hard times, firms are unlikely to employ new workers but are reluctant to let go of their current workers and so the young struggle to get a job.

Question 53

Why is retirement an issue for the labour market?

Answer 53

Rising life expectancy and an increase in the number of people reaching retirement age, as the ‘baby boomers’ reach retirement, has negative effects on the government budget. Pensioners now makeup over 50% of welfare spending. The retirement age will have to continue to rise and the government is trying to encourage people to save for their own pensions.

Question 54

Why is wage inequality an issue in the labour market?

Answer 54

Over time, those on the highest wages have seen their wages grow by a bigger percentage than those on the lowest wages. This is a contentious issue and raises questions over relative poverty and the level of redistribution required.

Question 55

Why are zero-hour contracts an issue for the labour market?

Answer 55

​There has been a rise in zero-hour contracts and this causes problems for employees who do not know how much they will earn a week and receive little notice of when they will be required to work.

Question 56

Why is the ‘Gig-economy’ an issue for those in the labour market?

Answer 56

Many more people are now self-employed and undertake short term contracts, working for companies such as Uber and Deliveroo. There are concerns over the rights of these workers and the unreliability of their pay each week.

Question 57

Why is migration an issue in the labour market?

Answer 57

​Many people suggest that migration causes a fall in wages but it allows employers to recruit from a larger pool of workers and helps to fill skills shortages.

Question 58

What is the national minimum wage?

Answer 58

● Labour introduced the National Minimum Wage in April 1999 to raise people out of poverty and decent minimum standards in the workplace. ​It changes every April, all workers over school leaving age receive their minimum wage and a failure to pay employees can lead to the firm being fined. The National Living Wage has been introduced for over 25 year olds, and is £10.42 in 2023.

Question 59

What are the arguments for the minimum wage?

Answer 59

● The wage is able to ​reduce poverty as it mainly impacts the lowest wages and ensures that these people have enough to live on.
● It can ​reduce male/female wage differentials as women are more likely to take up lower paid jobs (because they are vocational, offer more flexible hours etc.) and so a minimum wage is able to decrease the gaps between men and women.
● It may make employees less likely to leave their job as they feel more ​loyal to the businesses​, which will decrease labour turnover, and therefore recruitment and training costs. This will increase profit but is a ​weak argument since if they are offered a higher wage elsewhere, then they will leave.
● There could also be a ​more content workforce ​who will be more motivated and, thus making the business more productive and increasing its profits. However, this assumes all people are ​motivated by money​ and this is not necessarily the case.
● Moreover, a minimum wage provides an incentive to work and prevents the ‘unemployment trap’, when benefits are higher than the wage people would otherwise receive.
● It ensures everyone receives a ​fair wage, ​and is not exploited by being drastically underpaid.

Question 60

What are the negatives of the national minimum wage?

Answer 60

● The most notable negative consequence is the potential ​loss of jobs in the industry (or unemployment on a macro level).
● Moreover, the minimum wage will ​raise costs for the companies ​and so may increase their prices, which is liking to lead to a fall in profit.
● Another negative impact could be the ​wage spiral as individuals will try to protect wage differentials between them and the lowest price workers. An increase in the wage of the lowest paid will mean that others expect theirs to rise too. This will reduce profit and further reduce competitiveness.
● There is ​no consideration of regional differences​, and so this, alongside the fact many people on minimum wages are ​secondary earners​, means the minimum wage may be ineffective at reducing poverty.

Question 61

What will the impact of a minimum wage always depend on?

Answer 61

The impact of any minimum wage will depend on where it is set, and whether this is above or below the current wage. The level of job losses is dependent on the elasticity of supply and demand. If both are relatively elastic, there will be large job losses but if both are relatively inelastic, the losses will be small.

Question 62

What macro-economic impacts can be caused by a minimum wage?

Answer 62

-They will reduce inequality
-Lead to a rise in AD, since the poorest people see a rise in income and they have a high MPC. -This will lead to economic growth and employment.
-Public finances will be worsened as the gov employs many people on minimum wage
-The rise in business costs will lead to a reduction in competitiveness, which will negatively affect the trade balance and reduce the net trade component of AD. It will also cause an inwards shift of SRAS, causing inflation in the short term.

Question 63

Does the minimum wage offer protection in the gig economy?

Answer 63

Yes, as it should reduce the ability for employers to take advantage of those who are informally employed and on zero-hour contracts, or work part time.
-However, 52% of gig workers still were paid below the minimum wage, and many employers class employees as ‘self employed’ to pay them less.

Question 64

What are maximum wages?

Answer 64

● Minimum wages are fairly common but few places set maximum wages. Some people suggest there should be a maximum wage for chief executives or a maximum pay ratio ​compared to the lowest wage earners. The government can set maximum pay limits for public sector workers in order to keep public sector spending down. It will help to ​reduce inequality.

Question 65

What will maximum wages lead to?

Answer 65

The introduction of maximum wages will lead to ​excess demand within the industry, since people may not put themselves forward for the job if they don’t think the salary matches the stress and responsibilities or they know they could get higher wages abroad. The UK may suffer from a ​loss of the best workers​, which will reduce the quality of businesses and decrease competitiveness.

Question 66

What will the impact of a maximum wage depend on?

Answer 66

● The impact of this depends on the elasticities of supply and demand: inelastic means there will be little impact. It is argued that supply and demand for the highest paid workers, such as chief executives, is ​very inelastic since there is a small supply of chief executives and firms only need one chief executive so their cost is a very small part of total costs. This could mean maximum wages will have ​almost no effect on the market,​ other than causing a reduction in wages.

Question 67

How are public sector wages set?

Answer 67

Since trade unions in the UK are weak, in the ​short run​, the government can effectively ​make whatever wage decisions it decides ​in order to improve the budget. The public sector wages are agreed by government policy and independent pay review bodies. Public sector wages makes up over 20% of gov spending, and this means the gov budget will also influence wages.

Question 68

How does the influence of the private sector wages affect public sector wages?

Answer 68

Between 2010 and 2015, public sector workers experienced a ​pay freeze​. This put downward pressure on private sector wages ​since few people were likely to leave the private sector for the public sector and private sector employers could use this as evidence to limit pay rises for their workers.
● However, in the ​long run​, if private sector workers receive pay rises and public sector workers don’t, people will move from the public sector to the private sector and this will ​force the government to increase public sector wages in order to expand supply.
● As a result, the wages of public and private sector workers tend to rise by the same percentage over a long period of time but in the short term they can rise by different rates.

Question 69

Why did Junior doctors strike over public sector wages?

Answer 69

They wanted a pay rise of 35% as over the last 15 years, the pay rises given did not line up with inflation. These strikes caused millions of NHS appointments to be missed.

Question 70

How can labour market mobility be increased?

Answer 70

● They could improve the ​supply of houses and reduce the price of properties making it easier for people to move. They could make renting cheaper to help people working in temporary jobs.
● They could ​improve transport links which will allow people to work further away from where they live and if they do move, it will be easier for them to visit family and get to job interviews.
● National advertising​ could be used so people know about jobs all over the country.
● The government could introduce subsidies on houses, taxes etc. in ​areas where there are labour shortages to encourage people to move to the area and take up
jobs.
● One action taken has been to ​move public agencies out of London, for example the helps to prevent excess demand for labour in one place and excess supply in another.
DVLA was moved to Swansea​. Although this doesn’t improve the mobility of labour, it helps to prevent excess demand for labour in one place and excess supply in another.
-They could also encourage ​flexible work patterns which will allow more parents to work. On top of this, ​discrimination in the labour market could be reduced and employers who take on unemployed individuals from groups with above average unemployment rates could be subsidised.

Question 71

How can the occupational mobility of labour be increased through education?

Answer 71

● Vocational training​ can be increased, particularly for younger students.
● They could encourage ​further study​, such as university or technical courses at
college. They have been ​encouraging engineering degrees.
● They could encourage greater spending on ​training within work​.
● Education could be targeted at improving skills shortages and helping with job
applications, for example interview skills.
-This was done in 2017 through the apprenticeship levy.

Question 72

Does the minimum wage help fight against the gender pay gap?

Answer 72

Yes:
For women on the lower end of the wage spectrum, the minimum wage rate is likely to positively affect the gender pay gap as women are disproportionately in lower paying jobs.

No:
-As for industries above the minimum wage line the gender pay gap will not be improved due to women overall dominating lower income jobs compared to men (these jobs would be above minimum wage).
-Does not combate gender stereotypes involved with the gender pay gap like female goals and aspirations.
-Also does not impact increased vulnerability to women of childbearing age in accessing higher income jobs due to 40% of managers reluctant to hire young women. (As maternity leave causes financial loss from having to pay worker but not receiving their labour). This study is from a survey published by the guardian from the law firm Slater and Gordon. Also highlights reluctance to put mothers in higher positions (which would have higher pay).

Question 73

What factors can cause the gender pay gap?

Answer 73

-Women aged 18-24 typically earn 92% of what men who are in the same jobs earn.
-Women are more likely to work part-time and in lower paying jobs, such as social services and education.
-Women also tend to take more maternity leave than men, and this means they fall further behind in industry experience, this causes the gender pay gap to grow with age.
-Also caused illegally by stereotypical inequality

Question 74

How can public sector wages differ to private sector wages in nations of differing developments?

Answer 74

In developed nations, public sector wages are often lower, meaning that less well-qualified workers may be hired due to trouble recruiting. Developing nations see the opposite trend however, with public sector pay being higher, as well as offering better job security.