Question

please answer all in microsoft word

c.Explain and discuss the significance of the Efficiency Wage Theory and how it may result in discrimination in the work place.

d.Explain and discuss the significance of labor unions and their effect on the unemployment rate

Answer 1

1) The efficiency wage theory states that labors are paid more wages than the marginal productivity of the labors in order to motivate workers to work more, to attract quality labor to the organization, and retain the quality of the employees.

same time this leads to wage discrimination in the organization and industry same labor are paid more compared to other even for the same nature of work.

2) labors unions are established for the welfare of the workers in the issue such as minimum wages, implement the welfare schemes such other.

The different opinion about on labor union action and unemployment rate one view holds that increase in the wage rate will increase the price of the goods and cos of the production and results in the unemployment in the economy.

Another view is that it protects the jobs and reduce the unemployment rate.The labor is protected by the employer there unnecessary action or lay off.

Thus it is clear that labor union has both negative and positive effects on the unemployment rate.