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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

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Rahul Sunny answered 2 years ago
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