Question

As we have been learning that a labor market is a market in which Households supply labor. People in the households allocate their time to work for pay or not to work (leisure time). The labor market supply curve slopes up because the number of people willing and able to work rises as the wage rate rises and because the number of hours that each person is willing and able to work rises as the wage rate rises, at least up to some high wage rate.

Please answer the following questions in the light of the material we have been learning in module 12. (50 points- 10 points each)

1. People immigrate primarily to seek a higher quality of living but the question is why immigrate illegally?

2. In less-developed countries, labor is less costly relative to machinery and equipment, so labor is substituted for what other inputs?

3. At a high enough wage rate, the person feels that he or she can afford to take more leisure time. Comment with examples

4. Cite an example, say, of a firm not hiring people older than age fifty-five. What kind of segregation it is and is it legal?

5. Discuss why computer science professors earn more than English professors, and what comparable worth would mean to each professor’s salary.

Answer 1

Ans 1. illegal immigration

When people of other nations try to move on to other countries illegally.

There are many reasons why people move from one country to another. Such as employment, education, culture, relationships, etc. However, there is a difference between legal migration and illegal immigration.

Legal immigration is an act that does not go against the immigration policy of the nation they are moving to. Whereas, Illegal immigration is an act which is violating the immigration policy of the foreign country.

Reasons for illegal immigration can be plenty considering the situation of the individual.

• An individual can be a convict who is trying to escape the law or the execution.
• The immigration law of the country is not allowing people to migrate to their land. So people will try to sneak in through illegal ways.
• In addition to the point above, there are many limitations in place for the immigrants and the channel is highly regulated. Also, there is a limited route for legal entry in many nations.
• Family-based immigration in nations is also limited. So if any family member of the one immigrating to another country fails to meet the eligibility requirement, they will be prohibited to migrate through legal routes.
• And if they are able to get in 'line' of those legal routes, most of the time it takes too long to get approval and the visa. All of these circumstances lead to illegal immigration.

Ans 2. As the cost of labor is less as compared to capital intensive methods, the less-developed countries have substituted it with other inputs which are,

• Mining: Labor mining has been used as a substitute instead of obtaining costly machines. The firms save their expenses through the labors.
• Accounting: In place of using high-tech systems, the countries which are abundant in labor and are less-developed are making their accountant or clerks still relly on simple calculators and ledger books.
• Furniture: Labors also used in the business of furniture-making.
• Farming: The laborers are utilized by the farming field-owners in place of high-tech machines.

There are many other works that are being done by the laborers as this method is less costly for the businesses. And the laborers accept the low-wages even if the work they do is very demanding. This is because of the lack of jobs in the developing nation.

Ans 3. For example, a student finds work in the summer break. After reaching a certain wage amount, she will quit the job for leisure instead of working more.

We can also take the example of the great writer Henry David Thoreau who worked and earned up to some amount for a time being and then spent his remaining year in leisure.

However, this is not the only effect of a high wage rate. The high wage rate does provide the individual with more leisure time and thus they want to work less. But there are also some people who after gaining a high wage rate will strive to work more and earn more. Although a certain wage level will always be there for every individual after which they will start to focus on leisure than working more.

This leisure is only applicable to some jobs and activities.

Ans 4. It is called Age discrimination when the place a 40 years old or older worker is employed at is only accepting young workers or wants to fire the old worker and also not providing them any promotion even after a long time.

It is an illegal concept. A workplace can't discriminate against the old generation who are employed at their firm.

In the USA, Age Discrimination of the Employment Act, 1967 is the policy that is guarding the old workers or employees against age discrimination.

For example, Lily goes to an interview where the interviewer asks Lily about her age. After knowing that she is 35 years old, she is not accepted for the job.

or when Adam has been working in a firm for about 20 years and now he is 45 years old. He is competent and hard-working but he had not been promoted to a higher status even after all these years. And just recently, the company hired a man in the position above him and he is 28 years old. After knowing his new boss, Adam determines that their capabilities are not that different.