Essays on Labor Supply

Introduction

Migration is a situation where people move from one place to another for varied reasons. It can occur from a region to another, from one country to the next or even from one continent to the next. In International Migration, people move from one country to another or others. The movement can be an individual, a family, clan, and other groups with a common interest. The reason for this displacement can be wage driven, capital, risks, or labor demand. Many theories explain the reasons why people migrate; in this paper, we will discuss two of them; neoclassical economic theory ...

Institutions

The Fallacy of Microfinance Microfinance has been billed by many as a solution to the persistent problem of poverty. This is as result of the fact that it has been hailed to create and expand micro-enterprises and in the process improving the socio-economic situations of those that own the micro-enterprises, who generally tend to be women. However, according to Banerjee, Duflo, Glennerster, & Kinnan (2014), microfinance does not necessarily lead to people rising out of poverty. The argument held by Banerjee, Duflo, Glennerster, & Kinnan (2014) gives credence to the apprehensions some have had about the romanticized stories on microfinance. I ...

Compensation strategy of an organization is essential in ensuring a competitive advantage over rivals. In the contemporary business world, companies face increasing pressure to offer high-quality products and services. Compensation strategy is important to employees and employers. Workers often depend on salaries, wages, as well as benefits for income provision. Compensation practices differ in various companies. Managing compensation is a primary mechanism for decisions in the job market. Proper compensation management is crucial in improving organizational performance. Most companies adopt compensation strategies that enable employees to produce high-quality work. Companies such as Baker Hughes have a strategy aligned with ...

Significant increases in the national debt, with no relief or plans to deal with the problem, and its effect on the economy An increase in national budget, with no relief or plans to deal with the problem, will result in a deficit, or more spending with less national input. Repercussions for a budget deficit can mean more borrowings for the national government from the private sector, such as the selling of bonds or gilts to the private sector. The debate over the budget deficit has two opposing views. The first one is that the deficit is destructive to the ...

Question 1.

As the production will increase, the supply curve will shift to the right, therefore the equilibrium price will decrease, (Figure 1): Figure 1. The increase in production on the mango market Thus, as the quantity of production has increased by 30 % from Q0 to Q1, the supply curve shifts from S0 to S1 and the equilibrium price decreases from P0 to P1.

Question 2.

In agriculture, the term bumper harvest means the unusually high production of a crop. Though some politicians might claim that this benefits the farmers, actually that is not exactly so. Firstly, with the increased production the ...

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Introduction

High rates of unemployment are referred to one of the biggest economic concerns in the United States. The number of unemployed people increases substantially in the periods of economic downturn. As Stater and Wenger (2013) ascertain, “the national unemployment rates averaged 9.5 and 9.0 percent in 2010 and 2011” (p. 2). The unemployment rate serves as an indicator of “a community’s socioeconomic deprivation as well as its social disintegration or disorganization” (Singh & Siahpush, 2016, p. 9). This indicator is strongly associated with income inequality as well as levels of poverty across ...

Introduction

In economics, a market is an institution or a mechanism that brings together buyers (bearers of demand) and sellers (suppliers) of certain goods and services. At the same time, markets may take various forms, including the form of the labor market. The labor market not only covers employees in all sectors of the economy of various skilled workers, but also working-age people who are not involved in the social production at the moment (for example, temporarily unemployed people). In the most general form, the labor market is the economic relationship between the demand and the supply of labor. The ...

Introduction

Germany is a leading and developed country of the Europe and has a remarkable influence on the economic structure and policies in the Europe. The country has an area of 357021 square kilometers and a population of 81.4 million people. The economic structure of Germany is social market structure. The country is rich in highly technical and skilled workforce, low levels of corruption and high capital stock. The major reliance is on the exports, and the country is the third largest exporter in the world. The economy of Germany is largest in the Europe, and the makes a fifth ...

Introduction

Labor constitutes a fundamental factor of production, and it is one of the determinants of services and commodity prices. It entails human efforts used in the creation of goods and services, and its rewards are salaries or wages. Unemployment is one of the major economic problems facing many countries, especially developing ones. Attaining full employment level is the objective of most governments since it is an essential driver to achieving economic growth and development. In most developing countries, labor markets are poorly developed, and wages are determined by market forces of demand and supply. As such, labor is poorly ...

Impact of Minimum Wage on Labor Markets

Minimum wage is the price floor imposed in the labor market to ensure that firms don’t exploit workers. Usually, the minimum wage is set above the equilibrium wage. The minimum wage ensures workers get adequate income that can enable them to live a decent lifestyle. This price floor is revised from time to time as per changes in the cost of living. Therefore, it disrupts the supply and demand of labor in the economy. Economists who advocate for this policy argue that it supports the low-skilled workers who are easily exploited due to their low bargaining power (David, ...

The purpose of this memo is to give an overview of the theory of labor economics. Firstly, it will highlight the interaction of supply, demand, and prices of labor/wages. This is followed by a brief explanation of the benefits and costs associated with an increase in the minimum wage. Next, recommendations will be made on the way forward for Michigan State. The recommendations given will be supported by reasons. Finally, policies will be suggested on what the state should do to guide regulation of wages. In labor economic theory, the price of labor affect and is also affected by ...

Article Summary

Japan is presently facing a shortage of both skilled and unskilled labor. The shortage has occurred from three primary reasons. One is the ageing population. Japan is facing a situation of falling demographic dividend as a higher percentage of the population is at the dependent age group of 65 years and above. The percentage of population in the workable age group of 16 to 65 years is lower in Japan. Secondly, strict immigration laws in Japan does not allow the gap between labor demand and supply be filled with foreign workers. Thirdly, there is a mismatch between the skill ...

Trump is the leading presidential candidate of the Republican Party, and he is campaigning under the slogan of make America great again. His campaign slogan is based on several extreme economic and social policies. The economic policies of a president are mainly macroeconomics policies that affect all the components of the country’s gross domestic product. His main economic policies touch on taxes, labor supply, investments, and international trade. He looks forward to cutting individual and cooperate taxes, increasing the volume of exports, decreasing imports and increasing private investment (Trump, 1). The most popular and extreme economic policy that ...