LABOR ECON-CONNECT ACCESS
8th Edition
ISBN: 9781264604197
Author: BORJAS
Publisher: MCG
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Chapter 7, Problem 5P
To determine
Nations face a compression in the wage distribution and the nations that experienced the greatest percent of wage dispersion.
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Analyze and elaborate the factors that lead to wage differentials between two different regions of a country.
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LABOR ECON-CONNECT ACCESS
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- Suppose the demand for the Vietnamese inexpensive products from many countries over the world have increased by about 15 percent even under the Coronavirus pandemic in 2020 (from January through August). Suppose further that the demand for Vietnamese skilled workers by the Vietnamese companies producing new high-tech and advanced products have decreased by about 10 percent in 2020 compared to those in 2019. What has happened to the wage gap between Vietnamese skilled and unskilled workers in 2020? Which of the following is MOST appropriate for an answer? A. The wage gap is most likely to fall. B. It is hard to predict unambiguously how the wage gap changes given above information. C. The wage gap is most likely to rise. D. The wage gap is most likely to be little changed. Perhaps b and c weren't the answer. Please let me know why the answer you chose is correct.arrow_forwardWhat are the effects of emigration on employment, wages, and social welfare if labor supply is not perfectly inelastic. How do the effects differ from where there is a perfectly inelastic labor supply?arrow_forwardIan works at an iron smelter in Pittsburgh, the center of iron production in America. Due to the difficulty in measuring the productivity of individual employees, Ian's employer as well as the other iron smelters all pay an efficiency wage. Adjust the wage line on the graph to reflect this situation. What characteristic of efficiency-wage jobs is not supported by the situation shown in the graph? The wage rate will eventually return to the market-clearing level. Efficiency wages result in an increase in the rate of unemployment. Elevated wages serve as an economic incentive to work harder. Efficiency wage jobs result in a surplus of workers at the wage being offered. Wage ($ per hour) Wage Quantity of workers (in thousands) S Oarrow_forward
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- Refer to the graph shown. Which of the following wage rates would be an effective price floor? Wage per hour $7.25 $6.50 $4.50 $6.50 $3.50 $4.50 $7.25 So 500 800 900 1200 Do Number of workersarrow_forwardIf the price elasticity of demand for labor is 0.2 and the wage increased from $11 to $16 an hour, what is the predicted decrease in the level of employment in percentage terms?arrow_forwardIn what decades did US female labor force participation increase the most rapidly? What factors drove both the magnitude of this change as well as its timing? How did the measured wage gap changed over the same period of time in which the greatest change in female labor force participation? What do Goldin (and/or Gordon) believe has led to movements in the wage gap? What is the significance of this result [in terms of discrimination]? How has female labor participation changed in recent decades? What accounts for this final observation?arrow_forward
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