What effect would this have on the real wage in medium run

Reference no: EM131145836

Bargaining power and wage determination

Even in the absence of collective bargaining, workers do have some bargaining power that allows them to receive wages higher than their reservation wage. Each worker's bargaining power depends both on the nature of the job and on the economy-wide labor market conditions. Let's consider each factor in turn.

a. Compare the job of a delivery person and a computer network administrator. In which of these jobs does a worker have more bargaining power? Why?

b. For any given job, how do labor market conditions affect a worker's bargaining power? Which labor-market variable would you look at to assess labor-market conditions?

c. Suppose that for given labor-market conditions [the variable you identified in part (b)], worker bargaining power throughout the economy increases. What effect would this have on the real wage in the medium run? in the short run? What determines the real wage in the model described in this chapter?

Reference no: EM131145836

Questions Cloud

Describe key difference between isa and us auditing standard : What efforts is the Auditing Standards Board making to clarify auditing standards? Describe the five key differences between ISA's and US Auditing Standards.

How can you write covered calls : You have inherited some stock from a wealthy relative.- How can you write covered calls and minimize the likelihood of exercise?

Discuss what are the lessons to be learned about motivation : Using three motivation theories/frameworks covered in this course, discuss what are the lessons to be learned about motivation from the practices of NUMMI

What is your own reservation wage : Relative to your reservation wage at the time you accept each job, which job pays more: your first one or the one you expect to have in 10 years?

What effect would this have on the real wage in medium run : Suppose that for given labor-market conditions [the variable you identified in part (b)], worker bargaining power throughout the economy increases. What effect would this have on the real wage in the medium run? in the short run? What determines t..

What type of tax rate structure does the us tax system apply : What type of tax rate structure does the U.S. tax system apply? What are the individual tax forms, and what factors are used to determine which one to use? What is taxable income, and how is it determined?

The npv of the investment : if we wanted the price after the offering to be $50 per share , and the NPV of the investment would be $.- Accounting dilution does not does occur in this case.

What would you estimate the scrap rate : What would you estimate the scrap rate to be using a 6-month moving average? Using that scrap rate, what would be your material estimate for a new contract for the item when the material required for the finished product is $90,000?

Why is there unemployment in the economy : Given your answer to part (a), why is there unemployment in the economy? (What would happen to real wages if the unemployment rate were equal to zero?)

User Account

All Pages