Questions from Labor Economics

Q: Referring back to Figure 7.8, explain why wage differentials

Referring back to Figure 7.8, explain why wage differentials resulting exclusively from efficiency wage payments (shirking model and turnover model) will persist rather than erode over time. Figure 7...

Q: Complete the following table for a single firm operating in labor market

Complete the following table for a single firm operating in labor market A and product market AA: a. What, if anything, can one conclude about the degree of competition in labor market A and product...

Q: How might labor mobility and migration affect the degree of monopsony power

How might labor mobility and migration affect the degree of monopsony power (Chapter 6) in labor markets?

Q: Assume that the official national unemployment rate rises from 4 percent to

Assume that the official national unemployment rate rises from 4 percent to 8 percent because of a major recession. What impact do you predict this would have on (a) The African-American to white un...

Q: How is the pure union wage advantage defined? If in a

How is the pure union wage advantage defined? If in a given labor market the wage rate would be $16 without a union and $20 with a union, then what is the pure union wage advantage? Explain how, and i...

Q: Explain why a voluntary army may be less expensive to society than

Explain why a voluntary army may be less expensive to society than an army composed of draftees. Which will likely be less expensive to taxpayers?

Q: Assuming that income includes both private and public goods and that leisure

Assuming that income includes both private and public goods and that leisure is a normal good, explain how a major reduction in governmentally provided goods might increase a person’s optimal number o...

Q: Use Equation (9.1) to explain the likely effect

Use Equation (9.1) to explain the likely effect of each of the following on the present value of net benefits from migration: (a) age, (b) distance, (c) education, (d) marital status, and (e) the...

Q: Explain why “pay comparability” legislation requiring that the public sector

Explain why “pay comparability” legislation requiring that the public sector remunerate government employees at wages equal to private sector counterparts might create excess supplies of labor in publ...

Q: Explain how an increase in the minimum wage could;

Explain how an increase in the minimum wage could; a. Reduce teenage employment but leave the teenage unemployment rate unaffected. b. Reduce investment in human capital. c. Leave the poverty rate un...