Discuss the five important labor market trends and its effect on labor productivity.

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Answer 1

Question

Chapter 6, Problem 1RQ

To determine

Discuss the five important labor market trends and its effect on labor productivity.

Expert Solution & Answer

Explanation of Solution

There are five important trends in labor market. These are classified into two groups as trends in real wages and trends in employment and unemployment. The five trends are follows:

Extensive growth in real wage rate over the twentieth century.
Decreasing trend in real wage rate since the early 1970.
An increase in wage inequality in U.S.
Decreasing trend in the rapid employment growth in past 50 years.
High rates of unemployment in European countries during the past three decades.

Among these trends, the first three come under the category of trends in real wage and the remaining two comes under the category of trends in employment and unemployment. Extensive growth in real wage represents an increase in labor productivity and as a result, the demand for labor exceeds the supply of labor. A fall in real wage reduces labor productivity and the demand for and supply of labor grew equally. An increase in real wage among higher labor productivity increases the living standard of people. On the other hand, an increase in real wage for some workers increase the wage inequality while, in European countries potential laborers have been side-lined by a higher rate of unemployment.

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Answer

M” method Given the following model, solve by the method of “M”. (see image)

As indicated in the attached image, U.S. earnings for high- and low-skill workers as measured by educational attainment began diverging in the 1980s. The remaining questions in this problem set use the model for the labor market developed in class to walk through potential explanations for this trend. 1. Assume that there are just two types of workers, low- and high-skill. As a result, there are two labor markets: supply and demand for low-skill workers and supply and demand for high-skill workers. Using two carefully drawn labor-market figures, show that an increase in the demand for high skill workers can explain an increase in the relative wage of high-skill workers. 2. Using the same assumptions as in the previous question, use two carefully drawn labor-market figures to show that an increase in the supply of low-skill workers can explain an increase in the relative wage of high-skill workers.

Answer 2

Question

Chapter 6, Problem 1RQ

To determine

Discuss the five important labor market trends and its effect on labor productivity.

Expert Solution & Answer

Explanation of Solution

There are five important trends in labor market. These are classified into two groups as trends in real wages and trends in employment and unemployment. The five trends are follows:

Extensive growth in real wage rate over the twentieth century.
Decreasing trend in real wage rate since the early 1970.
An increase in wage inequality in U.S.
Decreasing trend in the rapid employment growth in past 50 years.
High rates of unemployment in European countries during the past three decades.

Among these trends, the first three come under the category of trends in real wage and the remaining two comes under the category of trends in employment and unemployment. Extensive growth in real wage represents an increase in labor productivity and as a result, the demand for labor exceeds the supply of labor. A fall in real wage reduces labor productivity and the demand for and supply of labor grew equally. An increase in real wage among higher labor productivity increases the living standard of people. On the other hand, an increase in real wage for some workers increase the wage inequality while, in European countries potential laborers have been side-lined by a higher rate of unemployment.

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Answer 3

Question

Chapter 6, Problem 1RQ

To determine

Discuss the five important labor market trends and its effect on labor productivity.

Expert Solution & Answer

Explanation of Solution

There are five important trends in labor market. These are classified into two groups as trends in real wages and trends in employment and unemployment. The five trends are follows:

Extensive growth in real wage rate over the twentieth century.
Decreasing trend in real wage rate since the early 1970.
An increase in wage inequality in U.S.
Decreasing trend in the rapid employment growth in past 50 years.
High rates of unemployment in European countries during the past three decades.

Among these trends, the first three come under the category of trends in real wage and the remaining two comes under the category of trends in employment and unemployment. Extensive growth in real wage represents an increase in labor productivity and as a result, the demand for labor exceeds the supply of labor. A fall in real wage reduces labor productivity and the demand for and supply of labor grew equally. An increase in real wage among higher labor productivity increases the living standard of people. On the other hand, an increase in real wage for some workers increase the wage inequality while, in European countries potential laborers have been side-lined by a higher rate of unemployment.

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Answer 4

Question

Chapter 6, Problem 1RQ

To determine

Discuss the five important labor market trends and its effect on labor productivity.

Expert Solution & Answer

Explanation of Solution

There are five important trends in labor market. These are classified into two groups as trends in real wages and trends in employment and unemployment. The five trends are follows:

Extensive growth in real wage rate over the twentieth century.
Decreasing trend in real wage rate since the early 1970.
An increase in wage inequality in U.S.
Decreasing trend in the rapid employment growth in past 50 years.
High rates of unemployment in European countries during the past three decades.

Among these trends, the first three come under the category of trends in real wage and the remaining two comes under the category of trends in employment and unemployment. Extensive growth in real wage represents an increase in labor productivity and as a result, the demand for labor exceeds the supply of labor. A fall in real wage reduces labor productivity and the demand for and supply of labor grew equally. An increase in real wage among higher labor productivity increases the living standard of people. On the other hand, an increase in real wage for some workers increase the wage inequality while, in European countries potential laborers have been side-lined by a higher rate of unemployment.

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Answer 5

Chapter 6, Problem 1RQ

To determine

Discuss the five important labor market trends and its effect on labor productivity.

Expert Solution & Answer

Explanation of Solution

There are five important trends in labor market. These are classified into two groups as trends in real wages and trends in employment and unemployment. The five trends are follows:

Extensive growth in real wage rate over the twentieth century.
Decreasing trend in real wage rate since the early 1970.
An increase in wage inequality in U.S.
Decreasing trend in the rapid employment growth in past 50 years.
High rates of unemployment in European countries during the past three decades.

Among these trends, the first three come under the category of trends in real wage and the remaining two comes under the category of trends in employment and unemployment. Extensive growth in real wage represents an increase in labor productivity and as a result, the demand for labor exceeds the supply of labor. A fall in real wage reduces labor productivity and the demand for and supply of labor grew equally. An increase in real wage among higher labor productivity increases the living standard of people. On the other hand, an increase in real wage for some workers increase the wage inequality while, in European countries potential laborers have been side-lined by a higher rate of unemployment.

Answer 6

Chapter 6, Problem 1RQ

To determine

Discuss the five important labor market trends and its effect on labor productivity.

Expert Solution & Answer

Explanation of Solution

There are five important trends in labor market. These are classified into two groups as trends in real wages and trends in employment and unemployment. The five trends are follows:

Extensive growth in real wage rate over the twentieth century.
Decreasing trend in real wage rate since the early 1970.
An increase in wage inequality in U.S.
Decreasing trend in the rapid employment growth in past 50 years.
High rates of unemployment in European countries during the past three decades.

Among these trends, the first three come under the category of trends in real wage and the remaining two comes under the category of trends in employment and unemployment. Extensive growth in real wage represents an increase in labor productivity and as a result, the demand for labor exceeds the supply of labor. A fall in real wage reduces labor productivity and the demand for and supply of labor grew equally. An increase in real wage among higher labor productivity increases the living standard of people. On the other hand, an increase in real wage for some workers increase the wage inequality while, in European countries potential laborers have been side-lined by a higher rate of unemployment.

Answer 7

Chapter 6, Problem 1RQ

To determine

Discuss the five important labor market trends and its effect on labor productivity.

Answer 8

Expert Solution & Answer

Explanation of Solution

There are five important trends in labor market. These are classified into two groups as trends in real wages and trends in employment and unemployment. The five trends are follows:

Extensive growth in real wage rate over the twentieth century.
Decreasing trend in real wage rate since the early 1970.
An increase in wage inequality in U.S.
Decreasing trend in the rapid employment growth in past 50 years.
High rates of unemployment in European countries during the past three decades.

Among these trends, the first three come under the category of trends in real wage and the remaining two comes under the category of trends in employment and unemployment. Extensive growth in real wage represents an increase in labor productivity and as a result, the demand for labor exceeds the supply of labor. A fall in real wage reduces labor productivity and the demand for and supply of labor grew equally. An increase in real wage among higher labor productivity increases the living standard of people. On the other hand, an increase in real wage for some workers increase the wage inequality while, in European countries potential laborers have been side-lined by a higher rate of unemployment.

Answer 9

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Answer 10

Expert Solution & Answer

Answer 11

Ch. 6 - Prob. 1RQ Ch. 6 - Prob. 2RQ Ch. 6 - Prob. 3RQ Ch. 6 - Prob. 4RQ Ch. 6 - Prob. 5RQ Ch. 6 - Prob. 6RQ Ch. 6 - Prob. 7RQ Ch. 6 - Prob. 1P Ch. 6 - Prob. 2P Ch. 6 - Prob. 3P

Discuss the five important labor market trends and its effect on labor productivity.

Discuss the five important labor market trends and its effect on labor productivity.

Explanation of Solution

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