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
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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
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3
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4
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$1.40.
$1.60.
$1.80....
What happens to the market clearing wage and equilibrium employment if the demand for labor increases?...
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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.
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