Path:p QUESTION 7 5a) What effect does a binding minimum wage have on employment? What effect...
What effect does a lower elasticity of demand have on the wage and employment outcomes for the employer and the union? How do technological changes affect the relative bargaining power of the parties?
A case study in chapter 6 discusses the federal minimum-wage law. Suppose the minimum wage is above the equilibrium wage in the market for unskilled labor. Using a supply-and-demand diagram of the market for unskilled labor, show the market wage, the number of workers who are employed, and the number of workers who are unemployed. Also show the total wage payments to unskilled workers. Now suppose the secretary of labor proposes a decrease in the minimum wage (with the lower...
What is the added worker effect? Summarize the evidence regarding the impact of the minimum wage on employment.
2. Card and Krueger (1994) estimate the effects of minimum wage on employment of fast-food industry. The below table reports the average full-time equivalent (FTE) employment per restaurant FTE Employment New Jersey Pennsylvania Before 23.3 20.4 After 21.2 21.0 a) Calculate the difference-in-difference estimate for the effect of minimum wage on employment. The standard error for the difference-in-difference estimate is 1.3. Is the estimate statistically significant at 5% level? The minimum wage had increased by 20% Calculate the labour demand...
Here is the question: 7 The accompanying graph shows the economy of Sanderston With no minimum wage law, identify the equilibrium wage and the equilibrium quantity of labor. Now, assume that a binding minimum wage law at $15.00 is enforced. Does this result in a shortage or surplus of labor? Calculate the amount. Does the situation described in the graph show an increase in unemployment or a decrease is the minimum wage law good or bad for the economy of...
e- Is it possible that a min wage does not affect the level of employment? Explain and use labor supply and demand diagram to illustrate your answer. (10 points) f-Everything else equal, how does a labor-saving technological innovation (e.g. robots) affect the surplus of the workers in the presence of a minimum wage policy? Explain and use a supply and demand diagram for the graphical presentation of your answer, (10 points) g-Assume that we want to compare the likely impact...
What effect would doubling the minimum wage have on income inequality? Choose one: A. an increase in income inequality B. a decrease in income inequality C. no change in income inequality D. It depends on how the higher minimum wage affects the equilibrium in the labor market.
Explain why U.S. minimum wage laws have historically had only a small impact on employment. Include a graph to depict the minimum wage as a part of your answer.
Question 51 (1 point) What is the market outcome and efficiency effect of minimum wage policy using the theory of perfect competitive markets? Unemployment - fair and affordable wage for all Shortage - loss in gain from trade Shortage - fair and affordable wage for all Unemployment - loss in gain from trade Question 52 (1 point) Why are too few resources generally devoted to research in new technologies in developing countries? New technologies cannot be patented. O Government research...
1. What are the implications of increasing the minimum monthly wage for example from 3000 to 4000 for full-time workers and introducing the Labor Reform Initiative (LRI).2. What effect does this have on unemployment in the country?