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Critics would argue the sticky wage theory. Arguing that some employers are in a time period when they can't change wages to a hirer place therefore what may appear to be the labor market equilibrium really isn't. [ Other employers are able to move to the higher place and therefore make higher profits. Another theory is known as the bonding theory. If one place were hiring a limited number of workers at a higher price workers would want to buy that job. Something like indentured servitude, or in modern times possible delayed wages. As we discussed earlier when a job pays for workers education the worker is the one that pays in the form of lower pay. When the education is increased the pay is increased. This would suggest at the present time all wages are equal. The bonding critique, therefore, suggests that efficiency wages models would self-destruct in the long run. Unfortunately the evidence to support the bonding critique or efficiency wages is not conclusive. Others critics argue that efficiency wages causes more unemployment, because of the high wage. The result of this higher-than-equilibrium wage is a lower rate of job finding and greater unemployment. As you can see from the supply and demand diagram the efficiency wage causes a surplus of workers.

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The average wage in Canada for a geologist with a Bachelor of Arts degree is around $60,000 to $80,000 per year, depending on experience and location. For a marketing professional with a Bachelor of Arts degree, the average wage is around $50,000 to $70,000 per year, again depending on experience and location.


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What shifts in global stratification seem to be taking place?

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Related Questions

What is the result of a high equilibrium wage?

an extra demand for workers


What is the result of high equilibrium wage?

an extra demand for workers


What happens when demand for workers is high and supply is low to the equilibrium wage?

Wage goes down.


What happens to the equilibrium wage when the demand for workers is high and supply is low?

Wage goes down.


What generally happens to the equilibrium wage when demand for workers is low and supply is high?

Wage goes down.


What generally happens to the equilibrium wage demand for workers is high and supply is low?

Wage goes down.


What generally happens to the equilibrium wage when demand for workers is high and supply is low?

Wage goes down.


Why is equilibrium wage for doctors high?

because the supply or doctors is relatively low and the demand is relatively high


What happens to the equilibrium wage and quantity of labor if output rises?

The equilibrium wage falls and the equilibrium quantity of labor rises


Paying an above-equilibrium wage rate?

There are some companies that choose to pay above average wage rate. They start their employees cents or dollars above the base wage.


What is a simple definition of equilibrium wage?

In economics, the equilibrium wage is the wage rate that produces neither an access supply of workers nor an excess demand for workers and labor ...en.wikipedia.org/wiki/Equilibrium_wage


When the wage rate paid to labor is below equilibrium?

When the wage rate paid to labour is below equilibrium wage, then labour is undersupplied. As firms require more labour to maximise their profit, they will slowly raise their wage rate (because revenue from labour > costs) until the equilibrium level is achieved (since no more profit is achieveable at this level).