Influence Of Government On Wage Determination And Employment In A Labour Market Using A National Minimum Wage
Economics notes
Influence Of Government On Wage Determination And Employment In A Labour Market Using A National Minimum Wage
➡️ Trade unions can influence wage determination by negotiating collective bargaining agreements with employers. These agreements can set wages and working conditions for union members, which can lead to higher wages than those offered to non-union workers.
➡️ Trade unions can also influence employment in a labour market by advocating for job security and job protection. This can lead to higher job stability and fewer layoffs, which can help to reduce unemployment.
➡️ Trade unions can also influence labour market conditions by advocating for better working conditions and better benefits. This can lead to improved job satisfaction and higher productivity, which can help to increase economic growth.
How does the implementation of a national minimum wage affect employment levels in a labour market?
The implementation of a national minimum wage can lead to a decrease in employment levels as employers may not be able to afford to hire as many workers at the higher wage rate. However, it can also lead to an increase in productivity and motivation among workers, which can offset the negative effects on employment.
What role does the government play in wage determination in a labour market?
The government can influence wage determination in a labour market through the implementation of policies such as minimum wage laws, collective bargaining agreements, and anti-discrimination laws. These policies can help to ensure that workers are paid a fair wage and that there is a level playing field for all workers.
How does the government's influence on wage determination impact the overall economy?
The government's influence on wage determination can have both positive and negative impacts on the overall economy. On the one hand, policies such as minimum wage laws can help to reduce poverty and inequality, which can lead to increased consumer spending and economic growth. On the other hand, if the government sets wages too high, it can lead to inflation and decreased competitiveness in the global market.