Question
In: Economics
Suppose that there are two types of workers in the labor market, type A (low skilled)...
Suppose that there are two types of workers in the labor market, type A (low skilled) and type B (high skilled). The market for type A is at equilibrium while the market for type B workers currently exhibits a surplus of workers. Discuss the effect of the introduction of a minimum wage in the market for type A workers on the quality of workers hired in the type A market and on the distribution of workers across the two markets –The use of graphs, whenever appropriate, is of course encouraged
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Suppose that there are two types of workers in the labor market, type A (low skilled)...
Suppose that there are two types of workers in the labor market,
type A (low skilled) and type B (high skilled). The market for type
A is at equilibrium while the market for type B workers currently
exhibits a surplus of workers. Discuss the effect of the
introduction of a minimum wage in the market for type A workers on
the quality of workers hired in the type A market and on the
distribution of workers across the two markets...
Consider the market for labor is segmented into the market for low skilled labor and the...
Consider the market for labor is segmented into the market for
low skilled labor and the market for high skilled labor. If the low
skilled labor market is given by the following function: labor
demand: w = 35 – 0.005L; and labor supply is 4000. If the high
skilled labor market is given by the following functions: labor
demand: w = 400 – 2L, and the labor supply function is given
by w = 160 + 1.2L. The hourly wage...
Consider the market for labor is segmented into the market for low skilled labor and the...
Consider the market for labor is segmented into the market for
low skilled labor and the market for high skilled labor. If the low
skilled labor market is given by the following function: labor
demand: w = 35 – 0.005L; and labor supply is 4000. If the high
skilled labor market is given by the following functions: labor
demand: w = 400 – 2L, and the labor supply function is given by w =
160 + 1.2L. The hourly wage...
Suppose labor demand for low-skilled workers in the United States is w = 24 - 0.1L...
Suppose labor demand for low-skilled workers in the United
States is w = 24 - 0.1L where L is the number of workers (in
millions) and w is the hourly wage. There are 120 million domestic
U.S. low-skilled workers who supply labor inelastically. If the
U.S. opened its borders to immigration, 20 million low-skilled
immigrants would enter the U.S. and supply labor inelastically.
Draw a clearly labeled graph showing the equilibrium
before immigration and the effect of opening the borders....
Suppose low skilled labor and capital are substitutes but high skilled labor and capital are complements....
Suppose low skilled labor and capital are substitutes but high
skilled labor and capital are complements. Over the past 45 years
the price of capital has dropped substantially because of the
computer revolution. Draw and explain 2 labor market diagrams
To show what has happened to the demand for high and low
skilled labor
Now add new supply curves to your diagrams to show the effect
of an increase in the number of high skilled workers and a decrease
in...
Suppose there exist two labour markets — one for low-skilled, and one for high-skilled workers. Any...
Suppose there exist two labour markets — one for low-skilled,
and one for high-skilled workers. Any low-skilled worker can become
a high-skilled worker by investing in education, the cost of which
is c. (a) What, if any, wage gap would exist between low- and
high-skilled workers in equilibrium? Explain. (b) Now suppose that
an improvement in technology raises the productivity of low-skilled
workers. Explain the process by which the markets would adjust to a
new equilibrium.
3. Consider the labor market for low-skilled workers: those who lack a high-school diploma and any...
3. Consider the labor market for low-skilled workers: those who
lack a high-school diploma and any experience in a skilled
trade.
a) Suppose that the equilibrium wage for low-skilled workers in
Idaho is $9.00 / hour and equilibrium quantity is 45,000. Draw a
labor-market supply/demand graph that illustrates that
equilibrium.
Consider the markets for low-skilled and high-skilled labor. a. Suppose the government introduces a subsidy to...
Consider the markets for low-skilled and high-skilled labor.
a. Suppose the government introduces a subsidy to the
employment of low-skilled workers physically paid to firms. (For
simplicity, assume the government pays firms some amount for each
low-skilled worker they hire.) How will the subsidy affect the
employment of low-skilled workers, the wage low-skilled workers
receive, and net of-subsidy wage for low-skilled workers paid by
firms? Will this policy tend to increase, decreaseor have no effect
on income inequality (or is...
Consider the markets for low-skilled and high-skilled labor. a. Suppose the government introduces a subsidy to...
Consider the markets for low-skilled and high-skilled labor.
a. Suppose the government introduces a subsidy to the employment
of low-skilled workers physically paid to firms. (For simplicity,
assume the government pays firms some amount for each low-skilled
worker they hire.) How will the subsidy affect the employment of
low-skilled workers, the wage low-skilled workers receive, and the
netof-subsidy wage for low-skilled workers paid by firms? Will this
policy tend to increase, decrease, or have no effect on income
inequality (or...
6. Suppose all workers in a certain labor market are of eitherhigh quality or low...
6. Suppose all workers in a certain labor market are of either
high quality or low quality. Potential employers value a
high-quality worker at $15,000 per month and a low-quality worker
at $7,500 per month. The monthly supply of high-quality workers is
QsH = 0.04(W - 1,500) and the supply of lowquality workers is QsL =
0.08(W - 1,500), where W is the monthly wage. If workers' abilities
are observable to employers, what are the equilibrium wages?A. WH = $15,000;...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Please write up a paper about a company called Hugo Boss including the materials below. 1)...
- Part 1) In what sense are all healthcare executives’ human resource managers? How can executive’s best...
- 5. Estimate numerically the change in carbonate-rock porosity caused by a complete dolomitization of calcite, accounting...
- Describe In 300 words a situation or incident from the 21st century that indicates that Adam...
- You are trying to evaluate a private firm’s potential as a good investment opportunity. Your mentor...
- Jin is an accountant. Nuankae is a sous chef at a successful Spanish restaurant on E....
- In American Government and Politics Today and answer the following questions. 1. What are the differences...
ADVERTISEMENT