Discuss and show the impact of this policy on the rural traditional wage, the rural labour force, and the urban sector unemployment. Can we expect the urban sector wage to equal to the traditional sector wage after the markets equilibrate through migration?

Discuss and show the impact of this policy on the rural traditional wage, the rural labour force, and the urban sector unemployment. Can we expect the urban sector wage to equal to the traditional sector wage after the markets equilibrate through migration?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter27: Wages, Unions, And Labor

Section27.3: Effects Of Labor Unions

Problem 3ST

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Discuss and show the impact of this policy on the rural traditional wage, the rural labour force, and the urban sector unemployment. Can we expect the urban sector wage to equal to the traditional sector wage after the markets equilibrate through migration?

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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Suppose in India, a minimum wage is instituted in the urban sector above the market clearing wage, whilst the rural traditional wage is market determined at a lower level than in the urban sector. Discuss and show the impact of this policy on the rural traditional wage, the rural labour force, and the urban sector unemployment. Can we expect the urban sector wage to equal to the traditional sector wage after the markets equilibrate through migration? What effects might the relocation costs and the introduction of factories in rural areas have on the equilibrium discussed in part (a)?
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Suppose in India, a minimum wage is instituted in the urban sector above the market clearingwage, whilst the rural traditional wage is market determined at a lower level than in the urbansector. 1) Discuss and show the impact of this policy on the rural traditional wage, the rural labourforce, and the urban sector unemployment. Can we expect the urban sector wage to equalto the traditional sector wage after the markets equilibrate through migration? 2) What effects might the relocation costs and the introduction of factories in rural areas haveon the equilibrium discussed in part (1)?
Suppose in India, a minimum wage is instituted in the urban sector above the market clearing wage, whilst the rural traditional wage is market determined at a lower level than in the urban sector. 1. Discuss and show the impact of this policy on the rural traditional wage, the rural labour force, and the urban sector unemployment. Can we expect the urban sector wage to equal to the traditional sector wage after the markets equilibrate through migration? 2. What effects might the relocation costs and the introduction of factories in rural areas have on the equilibrium discussed in part (a)? (draw the harris todaro model of migration)
Suppose in India, a minimum wage is instituted in the urban sector above the market clearing wage, whilst the rural traditional wage is market determined at a lower level than in the urban sector. 1. Discuss and show the impact of this policy on the rural traditional wage, the rural labour force, and the urban sector unemployment. Can we expect the urban sector wage to equal to the traditional sector wage after the markets equilibrate through migration? 2. What effects might the relocation costs and the introduction of factories in rural areas have on the equilibrium discussed in part (a)? Use Harris todaro model of migration graph and theory.
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?
Make a summary of this article. David, H., & Dorn, D. (2013). The growth of low-skill service jobs and the polarization of the US labor market. American economic review, 103(5), 1553-97.