8. Discuss the pros and cons of efficiency wages as opposed to deferred compensation as compensation systems to deter shirking and encourage work effort.

9. Discuss the expected impact on the occupational wage structure of each of the following policies:

i. An increase in unionization

ii. An increase in public subsidies to education, training, job search and mobility

iii. wage-price controls

iv. child labour laws

v. laws governing the minimum age one can leave school

vi. a reduction in rural-urban migration

vii. an increase in immigration

viii. stricter control of entry into the medical profession

ix. an exogenous influx of entry into the medical profession

10. Discuss the factors that determine the shape of labour supply curve for an occupation. Give an example of an occupation that may have an elastic supply curve and one that may have an inelastic supply, explain why this is so. If both

occupations received an equal increase in labour demand, what would happen to the skill differential between them? Use diagrams to explain.