How are wages determined in the U.S.?What are the most significant trends in wages over the past five years?Your answer should address the following:

1. Demand for labor
2. Minimum Wage legislation
3. Role of Unions
4. Outsourcing of jobs

Key points to be addressed in the answer:

• Determinants of the demand for labor at the firm and market levels
• What causes the demand curve to shift
• Consequences for the wage rate
• The effect of minimum wage legislation on market equilibrium
• Effect on demand and wage rate of outsourcing jobs
• Role of unions in wage determination - direct and indirect

Please cite any sources used.