Question

1. Airbnb has housed over 150 million guests in over 65,000 cities since 2008. Do a bit of research on what Airbnb is and how cities and the hotel industry has been responding to it. Draw a supply and demand graph, model the labor market for hotel workers, pre-Airbnb, and show how Airbnb has likely affected the market.

2. We all love to go to little, local ice cream shops. Many of these places hire teenagers over the summer to serve these delicious treats for us. Suppose that a new minimum wage bill comes online this summer, raising the minimum to $10/hour. Create two graphs: 1) model the market for these ice cream shop workers and how shop owners will likely respond to the minimum wage increase immediately after it happens; 2) model what would happen if a company starts using very cheap robot ice cream servers... how does it affect the market for teenage servers. Explain in your paragraph what is going on and give arguments why your graph is reasonable.

3. Many parts of the U.S. have a shortage of IT workers... not enough people are trained in these fields. Model the market for IT workers. What would happen if a new training program was targeted toward people in Appalachia who have a hard time finding work... the program trains this group to be IT technicians. Does it lead to more employment in IT?

4. You are looking at the labor market for young, childless males seeking work with low-paying employers (i.e. Wal-Mart). With a supply and demand graph, show the effects of expanding the EITC to these workers. Illustrate an initial equilibrium (before EITC), the shift due to the new EITC expansion, and point out the wage they get paid from the employer and the additional “pay” they get due to the EITC.

Answer 1

1.

Labour market will definately has a huge market

A number of factors influence labor and labor markets are immigration, discrimination, labor unions, unemployment, and income inequality between the rich and poor.

The Four Categories of Labor.

a)Unskilled Labor

b)Semiskilled Labor

c)Proffesional Labor

d)Skilled Labor

The labour market is characterised by stability and lack of fluidity and diversity of rates for similar jobs. A rise in the price of labour offered by a particular employer does not cause employees of other firms receiving fewer wages to leave their jobs and go to high wage employer.

Disadvantages of flexible labour markets

a) Lack of training. Part-time and temporary staff may not get sufficient training from firms because they only have short-term contracts. ...

b) Lower productivity. ...

c)Flexible labour markets create greater job insecurity and stress.

d) Rising inequality.

e) Higher search costs for workers needing to find new jobs.

2.

There are different changes in the ice cream shops

1. Make a Fun Ice Cream Challenge. ...
2. Host a Sundae Making Event. ...
3. Sponsor Parties to Get Your Name Out There. ...
4. Create a Tasting Bar at Your Local Grocery Store.

As of April 2019, it stood at £8.21 an hour for people aged 25 and older - the government refers to this main rate as the National Living Wage. There are four minimum wages below this amount for younger workers and apprentices: 21-24 years old: £7.70. 18-20 years old: £6.15.A new National Living Wage to be introduced in 2020 will see low-paid workers earn nearly a thousand pounds more a year. The new rate of pay will come in on 1 April 2020, a rise from £8.21 to £8.72 for workers over the age of 25, marking an increase of 6.2 per cent.

The National Minimum Wage was re-branded to the National Living Wage in 2016 for those over 25. In April 2019, the National Living Wage was increased by 38 pence-an-hour to £8.21. And in December 2019, Sajid Javid announced a Living Wage increase of 51p to £8.72, giving a boost to all those over 25.

3. We’ve known for a while now that there’s a tech talent shortage. But that shortage may be even bigger than you’d expected—in fact, according to a recent survey, it may be at its highest level since 2008.

IT outsourcer Harvey Nash and auditing firm KPMG surveyed over 3,000 technology leaders for their annual CIO Survey, and found that an astonishing 65% said that hiring challenges are hurting the industry. That number marks a six-point increase over last year’s survey, where 59% expressed that sentiment.The report points to data analytics experts as one role that’s especially hard to fill. Some employers are taking extra steps to connect with qualified candidates on that front—Microsoft recently announced a professional degree program aimed at fostering data science talent.But the tech talent gap is larger than any one role. It’s an overall shortage of people who know how to code, whether they’re doing back-end on mobile apps or developing cloud-computing platforms. That means that tech job seekers are uniquely in demand both within the tech industry and without. In fact, the company that posted the most tech job listings on Monster this month wasn’t a tech company at all, but health care giant UnitedHealth Group.Beyond data scientists, though, security and cloud computing are singled out as particular areas of IT spending—and subsequent hiring demand. The latter field was also identified as a potential growth area in Dell’s annual State of IT Trends report, in which a majority of respondents described cloud computing as their company’s primary tech trend.

The IT industry in India is a key part of the country’s economy. In 2017, information technology and its various subsectors represented almost eight percent of the nation’s overall GDP. In financial year 2019, this industry in India generated an annual revenue close to 180 billion U.S. dollars, a significant increase from the generated revenue ten years ago. A majority of this revenue was generated in exports while domestic revenue totaled to less than 50 billion U.S. dollars for the mentioned period.

4. The first systematic analysis of the labor market behavior and characteristics of child care workers in the United States. A nationally representative sample of over 4,000 child care workers from the 1977-87 March Current Population Surveys is used to provide an analysis of the characteristics of child care workers and to estimate a model of wages. The results indicate that child care workers' wages are generally unaffected by government subsidies and regulations, suggesting that the supply of child care labor is relatively elastic. Wages of child care workers have remained constant relative to other workers' wages from 1976-86 despite substantial real increases in child care subsidies. Relative wages of different classes of child care workers have also remained constant.