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Why or how can you explain Card and Krueger's findings? i.e. that an increase in the minimum wage did not increase
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- What reasons do Arnold and Bowie give for doubting Maitland’s claim that improving employee wages will inevitably lead to more unemployment and poverty?Why do efficiency wages generate involuntary unemployment? What factors prevent the market from clearing in efficiency wage models?Which of the following statements is false? （only 1 correct answer） A. Unions can have sufficient bargaining power to push wages above competitive market levels. B. Sticky wage theories cannot explain frictional unemployment C. The search and matching model is an example of a sticky wage theory D. None of the above statements are false..
- Explain why wage rigidity due to labor unions may lead to structural unemployment.Are minimum-wage laws a better explanation forstructural unemployment among teenagers or amongcollege graduates? Why?What happens to a supply curve when price changes but structural variables remain fixed? Provide an economic interpretation of this case.
- When unemployment exists in the supply and demand labor market model, there is an adjustment that brings the model back into equilibrium—back to full employment. Orthodox economists cite two mechanisms that cause the adjustment. Explain each of these.Explain involuntary unemployment under different theoriesGive two reasons why a firm might want to pay workers above the competitive wage and how can this lead to unemployment?
- How does the amount of unemployment created by an increase in the minimum wage depend on the elasticity of labor demand? Do you think an increase in the minimum wage will have a greater unemployment effect in the fast-food industry or in the lawn-care/landscaping industry?Restaurant waiters/waitresses are paid largely in the tips they receive from customers rather than in wages directly from the restaurant owners. Why? What problem does this pay system solve, and how does it solve that problem?Identify two reasons why a wage might rise above the market equilibrium,and describe their effect on the labor market.
