Question

Explain these facts using the postschool human capital theory. Only words, no equations. a) Doctors earn low wages during their residency b) Many firms fire recently hired workers during recessions.

Answer 1

a). In line with the demand of ''one nation , one ration card" the junior resident doctors protest for increasing their salary. They are demanding " one nation , one salary ".There’s growing resentment among the junior resident doctors about being paid “stipends” instead of full salaries.

These Resident doctors are postgraduate medical students whose degree courses last three years. During this period, most resident doctors are paid a stipend despite working longer hours than normal most of the time, they argue.

They all are treated as an employee on contract according to the medical council of India.

b). It was the best time for unskilled workers to get opportunity at the time of recession.This counters the common idea that lower-skilled, lower-quality workers are the first to be let go and have the hardest time finding a new job . At the time of recession , firms got benefit because now they were paying less wages to workers.

On the other hand , the unskilled workers also get work in recession and got the chance of showing their ability.