Flashcards
economics A2 MICRO - wage determination
Cards in this deck (5)
- 1wages are determined by ...- demand for labour- productivity , increases in the price of capital leading to a substitution of capital for labour
-supply- number of workers , working conditions making a particular industry more attractive - 2monopsonista monopsonist is able to exploit market power and therefore able to force down wage levels.
diagram. - 3trade unionan individual is likely to be in a relatively weak bargaining position compared to their employer. there is asymmetric information in the form of profitability, and labour regulation. trade unions increase bargaining power by bringing workers together. fix a minimum price for labour. theory suggests trade union increase price and create unemployment.
diagram - 4power of trade union- trade union membership and militancy - greater cost for the employer
- the demand curve for labour is relatively inelastic or elastic
- profitability of employer
diagram of bilateral monopoly, when a single buyer faces a single seller - 5factors- working environment- for example the danger of working in a mine may not attract as many workers. supply is low.
-trade union memberships
- globalisation- downward pressure on low skilled wages
-migration
- technologies- lost jobs
-decline of primary and secondary industry
- government policy to tackle inequality
- wage based on gender
-age
- part time vs full time
- region- London has high levels of wages, higher living costs, better educational attainment
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- A level Economics Flashcards on economics A2 MICRO - wage determination , created by Hari Kumarakuruparan on 18/04/2018.
- Created by
- Hari Kumarakuruparan · Apr 2018
- Updated
- Apr 18, 2018
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