Differentials and disequilibrium, Managerial Economics

Assignment Help:

DIFFERENTIALS AND DISEQUILIBRIUM

In a free enterprise system, workers aim at maximizing their wages.  Hence, it would be expected that workers would move form low-paying industries to high-paying industries and the low-paying industries would raise wages so as to retain labour until wage rates were uniform for all workers.

In practice, however, we observe differentials in wages both between occupations and even within the same occupations.  Differentials arising from the characteristics of the occupations are called compensating or equalizing differentials, because they represent pay units made to equalize the net remuneration and compensate the workers for differences in their jobs.


Related Discussions:- Differentials and disequilibrium

Derevatives ., how to solve problems using derivatives ?

how to solve problems using derivatives ?

Arguments for uneven distribution of income and wealth, Arguments for Uneve...

Arguments for Uneven Distribution of Income and Wealth The basic economic argument to justify large income inequality was the assumption that high personal and corporate income

Isoquants, #question.meaning of isoquants and its types

#question.meaning of isoquants and its types

Short run equilibrium of a firm under monopoly, The short run equilibrium o...

The short run equilibrium of monopolist is displayed below in figure. Figure: Abnormal Profit under Monopoly AR is the average revenue curve, MR is marginal revenue cu

Economic theory, How does economic theory contribute to managerial decision...

How does economic theory contribute to managerial decisions?

Asset market theory in environment and development, what is asset market th...

what is asset market theory theory in environmental economics?

ROLE OF SCARCITY, ROLE OF SCARCITY IN MANAGEMENT DECISION MAKING

ROLE OF SCARCITY IN MANAGEMENT DECISION MAKING

What is the equilibrium in the labor market, What is the equilibrium in the...

What is the equilibrium in the labor market? Explain briefly. Equilibrium in the Labor Market a. The market labor of demand curve is the horizontal total of the individual l

Real and nominal wages, Real and nominal wages Wages are wanted only f...

Real and nominal wages Wages are wanted only for what they will buy, real wages being wages in terms of the goods and services that can be bought with them.  Nominal wages

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd