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- The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”. Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.5. What are the three primary factors that determine the magnitude of the wage elasticity ofdemand for labour? These are called Hicks’ laws. For each of them, explain how they work..Please show all steps, I want to know all the steps involved. Thank you! Calculate the own-wage elasticity of demand for occupations a, b, and c below. ED and W are the original employment and wage. E ' D and W' are the new employment and wage. State whether the demand is elastic, inelastic, or unitary elastic. a. %Δ E D = 5, %Δ W = –10 b . E D = 50, W = 7 E'D = 40, W' = 8 c . E D = 80, W = 8 E' D = 100, W' = 6
- We studied three measures of wage dispersion and two measures of wage asymmetry in the chapter. What are they?The town of Villageton has 500 residents, of which 300 are employed, 30 are not working but activelyseeking work, 70 are children in school, 40 are retirees, 30 are full-time college students, 20 areinstitutionalized, and 10 are discouraged workers.e. Calculate the labor force participation rate (LFPR) using the numbers above.3. Suppose that a hypothetical “consumer market basket” consists only of Goods B and C, in thequantity: B = 10 and C = 6. As in question #1, use 2021 as a base year (i.e., 2021 = 100).You have the following wage band Housekeeper $ 11-12 The band is increased by 5% What are the new wage rates for the following: Housekeeper A 11.10 Housekeeper B 11.45 Housekeeper C 11.80 New Wage Rate = (Old Wage Rate X Raise %) + Old Wage Rate
- Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020. The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”. Provide a discussion on the welfare effect of the above that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.Suppose labor demand for low-skilled workers in the United States is w = 35 – 0.2Ewhere E is the number of workers (in millions) and w is the hourly wage. There are 100 million domestic U.S. low-skilled workers who supply labor inelastically. If the U.S. opened its borders to immigration, 25 million low-skill immigrants would enter the U.S. and supply labor inelastically. What is the market-clearing wage if immigration is not allowed? What is the market-clearing wage with open borders?In June 2020, the Egyptian national airline carrier announced a considerable reduction in the prices of domestic flights with the aim to promote domestic tourism. This is expected to increase the economic activity of several Egyptian cities that were negatively impacted by the suspension of international as well as national tourism movements caused by COVID-19 pandemic. Aswan is one of the cities to benefit from this price reduction. a) With the aid of illustrative graphs, explain the impact of this decision on the labour market of Aswan, especially on the rates of unemployment and labour market equilibrium. b) Assume that Luxor city has been excluded from this decision by the national airline carrier. Discuss whether it's labour market outcomes would still be impacted by it? c) Do you expect that the wages of workers- that has the same skills and productivity - will be the same in both cities?
- Show how each of the following changes the reservation wage graphically: 1) An increase in the wage 2) A decrease in the price of bananas 3) A will from a recently deceased relative Pls solve asap....Calculate the own-wage elasticity of demand for occupations a, b, and c below. ED and W are the original employment and wage. E ' D and W' are the new employment and wage. State whether the demand is elastic, inelastic, or unitary elastic. a. %Δ E D = 5, %Δ W = –10 b . E D = 50, W = 7 E'D = 40, W' = 8 c . E D = 80, W = 8 E' D = 100, W' = 6Aa1) For a non-participant in the labour market, an increase in non-labour income: a) will have an unknown effect because the income and substitution effects oppose one another b) will increase the reservation wage and leave the individual as a non-participant c) will have a large leisure inducing substitution effect d) will reduce hours worked because it is a pure income effect e) will reduce the reservation wage and (depending how big the reduction is) may coax the individual into the labour market
