Wage determination in competitive and non-competitive markets Flashcards
1
Q
Why are individual firms price takers?
A
Because they have to accept the wage rate that workers are being paid in the industry.
2
Q
What are the current labour market issues?
A
Skill shortage
Youth unemployment
Changes to retirement ages
School leaving age
Zero-hour contracts
Temporary/flexible working
3
Q
How has the government intervened with the labour market?
A
They have implemented minimum wages which is the legally imposed wage level that employers must pay their workers
4
Q
What are some policies used to tackle labour market immobility?
A
Improved training/education
Targeting skill shortages
Subsidising employers
Relocation of subsidies
Reducing information asymmetry
Reducing discrimination
5
Q
What is the significance of PED and PES for labour?
A
