Nobody downloaded yet

Labour Economics - Essay Example

Comments (0) Cite this document
There is a long history in labor economics and industrial relations of studying wages in specific labor markets. This interest dates back to early micro studies of labor markets that emphasized heterogeneity in wage policies across employers. Some more recent work has also studied the issue of within- versus between-employer wage differentials in the United States…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.7% of users find it useful
Labour Economics
Read TextPreview

Extract of sample
"Labour Economics"

Download file to see previous pages To get the industry labor supply and labor demand functions these must be added.
Minimum wages are intended to benefit low-paid workers. In practice a job is described by a set of characteristics, so in addition to the wage rate features such as the hours of work and the effort level required are relevant. If the impact of the minimum wage is to create an excess supply of workers, employers may benefit by degrading the non-wage aspects of the employment package. More effort, longer hours, fewer perks and a less agreeable working environment can all be imposed without a firm losing its workers. As indicated above, in response to the minimum wage employers raise hours of work to such an extent that the benefit of a higher wage is more than offset. Consequently, both the workers remaining in employment and those who become unemployed are made worse-off by the minimum wage. It also results in a loss of profit for the firm and introduces aggregate inefficiency. In this situation, there is nothing to commend a minimum wage policy. Under a fairly weak condition, a monopsonist responds to a minimum wage by reducing hours, which is a double bonus for those with jobs. Unlike the standard analysis of monopsony, which shows that a minimum wage, if set below the marginal revenue product of labor, is efficiency enhancing, it turns out that when hours are a choice variable there may be a loss of efficiency. A minimum wage on its own can no longer replicate the perfectly competitive outcome, but when combined with a limit on hours of work, a first-best outcome can be achieved. Prior discussions of minimum wages and the contrast between competition and monopsony have focused on whether the minimum wage will raise or lower employment - with it taken as granted that those remaining in employment always benefit.

When hours are variable, a job is described by its two characteristics: the wage rate and hours of employment. It is not surprising that a competitive firm forced to pay a minimum wage has to adjust the non-wage element of the employment package in a manner deleterious to the interests of the workers. Proposition 1 gives a result much stronger than this: the increase in hours more than offsets the benefit of the minimum wage. In the competitive environment the imposition of a minimum wage is always harmful to the workers. Moreover, this is even true for those who remain in employment and receive the increased wage. This is a simple consequence of the firm being able to adjust an inefficient variable (hours of work) to clear the market at the new wage. The standard monopsony result is that the introduction of a minimum wage that is below the marginal revenue product of labour (MRPL) must be beneficial to those employed and also have the effect of increasing employment. The latter effect arises because the marginal labour cost curve facing the firm is replaced by the fixed minimum wage at points below the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Labour Economics Essay Example | Topics and Well Written Essays - 2000 words”, n.d.)
Labour Economics Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from https://studentshare.org/sociology/1507855-labour-economics
(Labour Economics Essay Example | Topics and Well Written Essays - 2000 Words)
Labour Economics Essay Example | Topics and Well Written Essays - 2000 Words. https://studentshare.org/sociology/1507855-labour-economics.
“Labour Economics Essay Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/sociology/1507855-labour-economics.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
1-21). Nonetheless, the number of individuals in service is 331,000, lesser than the pre-recession height of 29.56 million traced for March 2008 to May 2008. The quarterly raise in overall employment was forced by permanent employment, which rose by 140,000 to arrive at 21.30 million.
6 Pages(1500 words)Essay
Labor Economics
More importantly, Smith advanced the idea that the wealth of a nation is due to the contribution of those who do the work, which is still applicable today as it was over two centuries ago. To wit, “The abundance or scantiness of its (society) annual supply must depend, during the continuance of that state, upon the proportion between those who are annually employed in useful labor and those who are not so employed (Smith).” In the same year, several important economic developments were happening.
4 Pages(1000 words)Essay
European Labour Market
The labour laws in the region have played role in the market and there have been many calls for review of the labour laws in most countries especially France which has been worst hit by labour crises. There has been evidence of the persistence of the stock of unemployment and employment in the European countries as contrasted to the US or Canada and the trend has taken of prima-facie evidence of declines in hiring and firing as regard the mobility of the work force.
21 Pages(5250 words)Essay
Labour Economics,
Unless the people of a country get educated, the country cannot grow and develop because the essential skills and expertise that the trained and educated people develop contribute to the national product of the country. Thus the policy makers of a country should be aware about the educational scenario and how the system can be run efficiently so that the country can develop a host of skilled labourers and educated professionals.
4 Pages(1000 words)Essay
Microeconomics of Labour Supply
This analysis allows us to see the incentives and choices of the labour force which ultimately affect the intensity of work and wage differentials.The supply and demand of labour will thus have a strong bearing upon the wage rate and the number of people employed.
8 Pages(2000 words)Essay
Labour Economics
(Becker and Tomes, 1986) Most of the time, biological factors and culture are being transmitted from the parents to their children through DNA. Basically, when the parents
12 Pages(3000 words)Essay
Deficiency in the Neo-Classical Labour Market Model and Possible Solution
More cannot be manufactured, and there are also a variance in available skills, experience and education levels. Labourers can also only work so many hours in a day, and have a choice in how long they want to work at what price. This is where the Neo-Classical theory stems from, as philosophers realized that the labour market function differently from other markets as there are more variables influencing the supply and demand.
4 Pages(1000 words)Essay
Internal labour markets/ motivating the workforce
fficult to do; hence the principal may prefer not to faultlessly supervise the behaviour or performance of the agent and pay in proportion to the level of effort. In several instances theory predicts that people should not be expecting the optimal products or outcomes to be
5 Pages(1250 words)Essay
The problem of unpaid labour in latin American economics
In Latin America, women and children make up the larger portion of the unpaid workforce. The children are denied the most important activities of their childhood such as sports in order to provide for their families. According to a survey conducted
12 Pages(3000 words)Essay
Effects of graduating from college in a bad economy
Finding show that in the long run there is no effect but in the short run, graduates experience consequences. Findings show that recession does not change the probability of getting employment or the number of hours an
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Labour Economics for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us