Question
In: Economics
Please summary the US and China labor market（growth rate of real wage and employment）since 2010. Using...
Please summary the US and China labor market（growth rate of real wage and employment）since 2010. Using demand and supply model of labor market to explain the trends.
Solutions
Expert Solution
US, and, China labour market
The growth rate of real wage, and, employment
Labor environment for Chinese workers has changed, due to market-oriented economic reform. The labour market, and, educational reforms increased the number of years of compulsory schooling to ten. Sixty percent of the change in earnings is the result of greater labor market efficiencies, 20 percent is due to higher levels of human capital, 20 percent is due to exogenous change.
The annual growth rate was under 5 percent, and, nominal wages tripled. Chinese labour market efficiency has improved, as the economy has changed from a centrally planned economy to a market-oriented labour market. The rise in earnings can be attributed to increase in the average level of human capital, and, increase in labour market efficiency. The Chinese labour market is modeled using the monopsony theory.
United
States
Wages depend on productivity - human, and, the physical capital. Wage growth has been modest, there has been broad-based strength in measures for increasing employment. The Fed has shown confidence in the country's economic direction. Wage growth has been sluggish, prices have been rising at a slow pace. The payroll number is above expectations, employment growth is strong. The unemployment rate is trending down.
Rahul Sunny answered 2 years agoRelated Solutions
Explain the employment and wage rate for a monopsony in an unorganized labor market graphically. Explain...
Explain the employment and wage rate for a monopsony in an
unorganized labor market
graphically. Explain graphically how the wage rate and
employment level change when a
union is established in this market.
(a) Explain how the following changes will affect the total employment, average wage rate, labor productivity, and growth rate of the GDP of an economy.
(a) Explain how the following changes will affect the total employment, average wage rate, labor productivity, and growth rate of the GDP of an economy.
(i) An increase in the labor force participation rate
(ii) Growth in capital per worker accompanied by technological change
Which of the above changes would contribute more toward a sustained high economic growth rate of an economy in the long run?
(b) Suggest three government policies that can be used to raise the...
Labor Demand Data Labor Supply Data Employment Total Product Product Price Employment Wage Rate 0 0...
Labor Demand Data
Labor Supply Data
Employment
Total Product
Product Price
Employment
Wage Rate
0
0
$2.20
0
--
1
15
2.00
1
$1.00
2
28
1.80
2
2.00
3
39
1.60
3
3.00
4
48
1.40
4
4.00
5
55
1.20
5
5.00
6
60
1.00
6
6.00
The table shows labor demand data on the left and labor supply
data on the right. What will be the profit-maximizing selling price
of the product?
Multiple Choice
$1.40.
$1.60.
$1.80....
What happens to the market clearing wage and equilibrium employment if the demand for labor increases?...
What happens to the market clearing wage and equilibrium
employment if the demand for labor increases?
What happens to the market clearing wage and equilibrium
employment if the supply of labor increases?
What happens to the market clearing wage and equilibrium
employment if the demand and supply of labor increases?
What happens to the equilibrium wage and equilibrium employment
of a given firm if the demand for product increases?
What happens to the equilibrium wage and equilibrium employment
of a...
Using a standard Solow growth model with population growth, describe the evolutions of the real wage,...
Using a standard Solow growth model with population growth,
describe the evolutions of the real wage, the real rental rate of
the physical capital and the aggregate physical capital real income
when an economy accumulates more physical capital per worker.
Suppose that the market for unskilled labour in Canada is such that the wage (price of labor) and employment (quantity of labor) are determined by supply and demand.
Suppose that the market for unskilled labour in Canada is
such that the wage (price of labor) and employment (quantity of
labor) are determined by supply and demand. Suppose further that
the Canadian government, concerned by the low revenues on the
market, decides to introduce a minimum wage. Suppose that initially
the equilibrium wage is CAD 1000 and the equilibrium quantity of
unskilled workers is 1,000,000 and that the government decides to
impose a minimum wage of CAD 1200.(a) Knowing...
Classical economists used the demand and supply model to explain the real wage rate, employment and...
Classical economists used the demand and supply model to explain
the real wage rate, employment and unemployment. Explain how the
classical economist reached the conclusion that the labor market
self corrects, and, therefore, involuntary unemployment must be a
consequence of rigidities with respect to nominal price (changes in
the price goods) shocks or real wage rigidities. Use graph(s) to
facilitate your analysis.
Draw the labor market for workers with a minimum wage above the market rate. Label on...
Draw the labor market for workers with a minimum wage above the
market rate.
Label on your graph the minimum wage, quantity demanded,
quantity supplied, and the price set by the market.
Is there a shortage or surplus of workers? How do you know?
Show on your graph.
Show the area of consumer surplus.
Show the area of producer surplus.
Show the area of the DWL.
Show the area of the potential loss from job search.
According to the US Bureau of Labor Statistics, in the United States, the employment rate measures...
According to the US Bureau of Labor Statistics, in the United
States, the employment rate measures the number of people who have
a job as a percentage of the working age population. In January
2020 the rate was 61.2%.
A) Recognizing that this is a binomial situation, give the
meaning S and F in this context. That is, define what you will
classify as a "success" S and what you will classify as a "failure"
F as it refers to...
According to the US Bureau of Labor Statistics, in the United States, the employment rate measures...
According to the US Bureau of Labor Statistics, in the United
States, the employment rate measures the number of people who have
a job as a percentage of the working age population. In January
2020 the rate was 61.2%.
A) Recognizing that this is a binomial situation, give the
meaning S and F in this context. That is, define what you will
classify as a "success" S and what you will classify as a "failure"
F as it refers to...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Consider the following linear programming problem: Maximize 10X + 8Y Subject to: 40X + 24Y <=...
- Gladstone Company tracks the number of units purchased and sold throughout each accounting period but applies...
- Think about a company you have worked for, either currently or in the past. Reflect upon...
- 1) X Bank has $1 million in new funds that must be allocated to mortgage (home)...
- Needs to be done in PYTHON A. Create a Dollar currency class with two integer attributes...
- Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget...
- Consider the case of Falcon Freight Inc. (FF): Five years of realized returns for FF are...
ADVERTISEMENT