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Factors Influencing Wage Disparities

Question

Analyse why skilled workers are usually paid more than unskilled workers.

Category:

Labor Market and Income Distribution

Preview Answer

STEPS TO WRITE ESSAY 💡MAIN POINTS💡OVERVIEW

I. Introduction
- Definition of skilled and unskilled workers
- Importance of understanding why skilled workers are paid more

II. Demand for Skilled Workers
- Higher productivity
- Education and qualifications
- Expectation of higher rate of return
- Sales and profits
- Better quality goods and services

III. Supply of Skilled Workers
- Shortage of people with skills and qualifications
- Inelastic supply

IV. Bargaining Power of Skilled Workers
- Harder to replace
- Potential for disruption through industrial action

V. Conclusion
- Recap of reasons why skilled workers are paid more
- Implications for the labor market and economy as a whole

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