Question

In: Economics

Markets are able to determine equilibrium wages, but many wage earners want more, and in some...

Markets are able to determine equilibrium wages, but many wage earners want more, and in some cases society has legislated structures that yield above-market wages. Select a SPECIFIC group of wage earners that actively (successfully or unsuccessfully is acceptable as a selection) takes steps to increase their wages above market levels. SPECIFICALLY list the steps this group takes and analyze the level of success (or non-success) this group has achieved in elevating its wages above markets levels. Discuss whether you feel legislative action should be taken 1) to further increase this group's wages above market levels OR 2) to allow this group's wages to return nearer to market levels.

Solutions

Expert Solution

Garbage collectors get wages above market levels.Such jobs are hazardous and dirty and so the wage is high .

Waste management services come under utility services like water, electricity and are charged per unit of waste from the people.Waste collection costs are distributed among the population and according to the amount of waste each user generates.Pay as you throw program are there to charge according to the waste users want to be collected. Since every household and business want trash to be collected , the municipality charges more from users as it will have to pay high wage to the garbage collector. So garbage collectors earn good money and their salary is increasing 18% which is a lot faster than 14% for all average workers.This is because it is difficult to find workers in this business.They work a lot too about 55 to 60 hours a week.Negative stigmas also stop people from taking such jobs.So this group has been successful in getting higher wages.

Yes I feel legislative action should be taken to increase the wages of garbage workers because their job is indispensable and for the contribution they make to the society.

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