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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.
What else can I help you with?
What is the average wage in Canada for a geologist BA and a marketing BA?
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.
How much money do ecologist get paid hourly?
The hourly wage for ecologists can vary widely depending on factors such as experience, education, and location. On average, an ecologist can earn anywhere from $20 to $50 per hour. Entry-level positions typically pay on the lower end of the scale, while more experienced ecologists or those with advanced degrees can command higher rates.
What shifts in global stratification seem to be taking place?
capitalism and economic power. this is because all stratification systems have contradiction that threaten to erupt forcing them to change. Changes in our minimum wage systems and this will affect the global economic situation
Who does fairtrade help?
Fairtrade helps small-scale farmers and workers in developing countries to receive fair prices for their products, improve their working conditions, and have more control over their livelihoods. It aims to empower communities by promoting sustainable practices, better wages, and support for social projects.
How much money per hour does a geologist make?
It really depends on what the geologist is doing; someone who tells an oil company where to drill is probably making quite a bit more than someone working for a governmental agency, who is probably again making more than someone teaching geology to 8th graders.
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).
