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Who benefits or loses from a low elasticity of demand for labor?
Wiki User
∙ 9y ago
The low elasticity of demand for labor decreases with unemployment benefit. Generally low pay workers prefer that the minimum wage rate be increased until the labor demand is unitary elastic.
Wiki User
∙ 9y ago
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What are things that loses its elasticity?
Clothes Skin/Body Rubberband Balloon Panty Hose
What they mean by Downward Demand Spiral?
Means the company has to increase sales price to cover increased per unit production costs due to a former decrease in capacity utilization and thus loses another portion of sales volume due to good elasticity and has to further increase prices and then lose market.
Who benefits and who loses from a shift in jobs to low-wage economies?
the employer usually benefits in low wage economies
What are your thoughts about minimum wage legislation what kind of a price control policy is this who gains who loses are there alternatives to this legislation for achieving the same policy objective?
What are your thoughts about minimum wage legislation? What kind of a price-control policy is this? Who gains? Who loses? Are there alternatives to this legislation for achieving the same policy objectives? What role do demand and supply elasticities play in determining outcomes?What are your thoughts about minimum wage legislation?Minimum wage legislation is a government intervention. The main reason for government intervention is to correct for market failure, to achieve a more equitable distribution of income and wealth and to improve the performance of the economy. Employment laws may offer some legal protection for workers by providing a price-floor in the labor market through the setting of a minimum wage.What kind of a price-control policy is this?This kind of price-control policy is directed at the control of inflation, but it may also indicate efforts to alter the distribution of income among incomes-policy, industries, locations, or occupational groups.Who gains?Price controls almost always benefit a subset of consumers who may have a particular claim to public sympathy and who, in any case, have a strong interest in lobbying for controls. Minimum-wage laws may create unemployment among the unskilled or drive them into the black market, but minimum wages do raise the income of those poor workers who remain employed in regulated marketsWho loses?The unskilled workers lose because the companies become picky in hiring. Companies hire less personnel when the minimum wage is increased.Are there alternatives to this legislation for achieving the same policy objectives?Yes, an alternative to this legislation is what California is doing. The state of California offers Calfresh, which is food stamps for qualified residents who are categorized as low income. Section 8 of the Housing Urban Development help defray rent for qualified low income. Qualified residents' cost of living is defrayed by government incentives. This is called pump priming. The action taken to stimulate an economy, usually during a recessionary period, through government spending, and interest rate and tax reductions. The term "pump priming" is derived from the operation of older pumps; a suction valve had to be primed with water so that the pump would function properly. As with these pumps, pump priming assumes that the economy must be primed to function properly once again. In this regard, government spending is assumed to stimulate private spending, which in turn should lead to economic expansion.What role do demand and supply elasticities play in determining outcomes?A minimum wage can increase low-skilled workers' wages at the expense of other factors of production - such as higher skilled workers or capital - and hence can be potentially useful for redistribution. However, it may also lead to involuntary unemployment, thereby worsening the welfare of workers who lose their jobs.A binding minimum wage is desirable as long as the governmentvalues redistribution from high- to low-wage workers, the demand elasticity of low-skilled labor is finite, the supply elasticity of low-skilled labor is positive, and most importantly, that the unemployment induced by the minimum wage is efficient, i.e. unemployment hits workers with the lowest surplus first. Minimum wage is desirable if unemployment induced by minimum wage is efficient and the government values redistribution toward low-skilled workers.The resulting optimal minimum wage is decreasing in the demand elasticity because a minimum wage has larger unemployment effects when the demand elasticity is higher. The optimal minimum wage is increasing in the supply elasticity because a high supply elasticity implies that marginal workers have a low surplus from working (since many would leave the labor force if the wages were slightly reduced).References:http://tutor2u.net/economics/revision-notes/as-marketfailure-government-intervention-2.htmlincomes-policyhttp://www.econlib.org/library/Enc/PriceControls.htmlhttp://www.investopedia.com/terms/p/pump-priming.asp#ixzz1bsJFTYk9http://elsa.berkeley.edu/~saez/lee-saezJan10minwage.pdfhttp://www.princeton.edu/~davidlee/wp/w14320.pdfReadings:http://www.isil.org/resources/lit/jobs-min-wage.html
Explain who loses from inflation and who loses from unemployment?
explain who loses from inflation and who loses from unemplyment
When the lens loses its elasticity and can no longer bring near objects in focus what is the condition?
Presbyopia
What is something that loses elasticity?
Clothes Skin/Body Rubberband Balloon Panty Hose
What are things that loses its elasticity?
Clothes Skin/Body Rubberband Balloon Panty Hose
What are the release dates for Howard Stern on Demand - 2005 Artie Loses Charity?
Howard Stern on Demand - 2005 Artie Loses Charity was released on: USA: April 2008
Can you wear expired latex gloves?
At some point the latex becomes brittle and loses its elasticity. It will chip, crack and fall apart and therefore loses usefulness in the field of safety.
Who benefits and who loses from a shift in jobs to low-wage economies?
the employer usually benefits in low wage economies
What they mean by Downward Demand Spiral?
Means the company has to increase sales price to cover increased per unit production costs due to a former decrease in capacity utilization and thus loses another portion of sales volume due to good elasticity and has to further increase prices and then lose market.
How much does adding a pool the value a home at Nebraska?
it loses value. value is supply vs demand. many people don't want a pool in their house, you eliminate that group from consideration thereby reducing demand.
What assessment finding is the least reliable indicator of fluid status in an 80-year-old person?
Skin turgor in geriatric clients is not a reliable indicator of fluid status, because as people age the skin normally loses its elasticity.
Do hip tattoos go back to normal after being pregnant?
When weight is gained, skin stretches and loses its elasticity(nothing you can do about it), but if you do your best to exercise this part of your body, you can tighten the skin back up depending on how badly it is stretched. Good Luck!!
How do spectacles work?
Corrective lenses modify the focal length of the eye to alleviate the effects of nearsightedness (myopia), farsightedness (hyperopia) or astigmatism. As people age, the eye's crystalline lens loses elasticity, resulting in presbyopia, which limits their ability to change
How smoking kills the human body?
smoking introduces toxic substances like ammonia or arsenic etc which attached to the respiratory tract and loses the elasticity of the alveolar tract and destroys the alveoli due to whih improper conversion of gases happens and slowly causes cancer
