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Factors Affecting Wage Decline

Question

Analyse why the wages of workers in a particular occupation may fall.

Category:

Labor Market and Income Distribution

Frequently asked question

Preview Answer

I. 🍃Introduction
- Explanation of the topic
- Importance of understanding the reasons for falling demand for workers

II. Reasons for falling demand for workers
A. Demand for the good or service they provide falls
- Explanation of how this affects demand for workers
- Examples of industries affected by falling demand

B. Productivity falls
- Explanation of how this affects demand for workers
- Examples of industries affected by falling productivity

C. Replaced by capital equipment
- Explanation of how this affects demand for workers
- Examples of industries affected by capital equipment

D. Technological advances
- Explanation of how this affects demand for workers
- Examples of industries affected by technological advances

E. Obsolete skills
- Explanation of how this affects demand for workers
- Examples of industries affected by obsolete skills

III. Consequences of falling demand for workers
- Unemployment
- Lower wages
- Economic downturn

IV. Solutions to falling demand for workers
- Retraining programs
- Investment in new industries
- Government intervention

V. 👉Conclusion
- Recap of reasons for falling demand for workers
- Importance of finding solutions to prevent negative consequences

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