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Labor Markets and Wage Determination Homework Answers

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Labor Markets & Wage Determination Assignment Answers

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Are you a pursuing a course in economics and need the best support from experts writers? If you are finding yourself in troubled waters with Labor Markets & Wage Determination homework answers, then you can surely get in touch with us, myhomeworkhelp.com. We can assist you in the best possible way in tune with your exact brief!

Labor Markets & Wage Determination: A brief study with examples

Let’s first understand these terms individually.

Labor market is a common market where workers and employers meet, interact and work for mutual benefit. It is where employers demand services, labors supply services.

Wage determination is the process of how wage rate is decided among the workers and employers. Among other factors, it is based on demand and supply of labors in the market. Let’s understand this more elaborately.

How much a worker or employee charges for the service is dependent of a whole wide range of factors. The most common factor is, like mentioned, demand and supply—how many number of workers are needed and how many workers are available.

Decoding the process of wage determination

Say, a company wants to hire more people. If there are many interested candidates out there, the company will have more options. Meaning, it can avoid people who are asking for a higher wage and consider those who demands less. On the other side of this picture, the candidates would have a similar mindset. Upon seeing a high competition (that is, too many interested candidates) they would lower their demand for higher wage. Eventually, in this scenario, the demand and supply of labors who find an equilibrium where wage is low.

Now coming to scenario two, where there is more demand for workers and less supply. Here, the company would want to hire people desperately because it needs it. So it would be ready to pay higher wage if the worker asks for it. Here, the power lies with the workers who can demand higher rewards because there aren’t many competitors. In this case, the demand and supply of labors would find equilibrium where wage is high. Students are often given reports to write and Labor Markets & Wage Determination assignment answers to juggle based on these topics.

This is how labor market functions.

But like mentioned already, there are many other factors aside from demand and supply of labors—including their skills, employers’ distinct needs, the location of work, and more. These factors can (and will) influence the equilibrium to left or right, high or low.

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