080307 - w Signal Observable characteristic that is...

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Sheet1 Page 1 ------ Factors that affect wages: 1) Preferences 2) Skills - More skilled workers have a higher demand and lower supply (because of time and cost involved in obtaining skill) s o 3) Discrimination 4) Unions Human Capital: Skills and talents people possess The labor supply and demand graph is the same as the regular supply and demand graph, with the vertical axis representing
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Unformatted text preview: w Signal: Observable characteristic that is correlated with an unobservable but relevant characteristic Unions can negotiate past the equilibrium wages, which can cause a decrease in the amount of employment. This can cause a...
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This note was uploaded on 04/13/2008 for the course ECO 2023 taught by Professor Rush during the Summer '08 term at University of Florida.

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