Suppose the Thai market of unskilled labor is in equilibrium where the equilibrium wage and equilibrium quantity of labor employed are W and L, respectively. Then, the government decides to impose a minimum wage at a wage of W* which is lower than W. Carefully explain whether the following statement is true or false "Therefore, with this imposed minimum wage, all unskilled labor are financially worse off"
Suppose the Thai market of unskilled labor is in equilibrium where the equilibrium wage and equilibrium quantity of labor employed are W and L, respectively. Then, the government decides to impose a minimum wage at a wage of W* which is lower than W. Carefully explain whether the following statement is true or false "Therefore, with this imposed minimum wage, all unskilled labor are financially worse off"
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 5P
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Suppose the Thai market of unskilled labor is in equilibrium where the equilibrium wage and
Carefully explain whether the following statement is true or false
"Therefore, with this imposed minimum wage, all unskilled labor are financially worse off"
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