Question
In the unskilled labor market, employees are often young and inexperienced. With little past performance to judge potential employees on, many firms higher employees for
In the unskilled labor market, employees are often young and inexperienced. With little past performance to judge potential employees on, many firms higher employees for a trial period with the understanding the employee will be dismissed for substandard performance. Job protection rights can make it relatively difficult and expensive for firms to fire employees. How might stringent job protection measures affect the demand for unskilled labor?
Suppose the minimum wage in one state is much higher than in a neighboring state. How might this affect the supply and demand for unskilled labor in each economy in the short run versus the long run?
Political debates about minimum wage often include the question of whether it is a "fair wage" that can provide an acceptable standard of living. Comparing the standard of living today to a hundred years ago, how have changes in technology affected the standard of living in the U.S.? Should the minimum wage adapt to changes in standard of living measures? Why or why
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