labor economics

Currently, the island of Guam does not have a minimum wage requirement but uses the U.S. minimum wage as a reference. Provide a theoretical justification for why the imposition of a $5.15 minimum wage in Guam might have a detectable impact on overall employment on the island. Explain why the $5.15 minimum wage in New Jersey likely has less of a detectable impact on employment.

econ

consider a firms short run decision to hire workers. assume that a firm produces goods for sale in a perfectly competitive market. labor markets are competitive as well. assume the production function is Q=40L-3L(squared). One unit of a good is sold for $2 a) why does capital not appear in the production function? b) derive the short-run labor demand curve. (simply plug numbers in to approximate) c) assuming the wage rate is $25/hour, how many workers will this firm hire in the short run?

Isoquant

Economists have advanced a number of theories to explain the nature and effect of discrimination in labor markets. in the most basic theory, white men and black men are assumed to be perfect substitutes that are equally productive in producing a good. a) Depict an isoquant map depicting a typical firm's use of two inputs - white and black labor. Label its slope. b) Assume that discrimination exists in a society such that the wage paid to black workers is $12 but the wage paid to white workers is $13, as determined by the market. For the three profit maximizing firms described. FIRM A: not prejudice in any way and does not discriminate between black and white workers. FIRM B: p... click for more

labor econ

you have been asked by your boss to predict what the hours of work by your employees would be following a proposed raise. you have had a flexible policy of workers choosing their hours and would like to determine whether the raise would have a huge impact on hours worked. you have the resultsof studies conducted for three other companies, which estimate labor supply elasticities following raises at those companies. you decide to summarize the results of those studies in a manner that your boss can understand. currently, the average employee at your company works 2000 hours a year. fill in the blanks of the table. Firm Estimated Predicted hrs worked for avg Predicted hrs wo... click for more

labor econ

Determine whether True or False a) A firms labor demand curve will be more elastic if product demand is more elastic. b) The earned income tax credit has been shown to increase labor force participation. c) monopsonists are defined by their ability to set prices in the product market. d) an increase in the demand for wine, hold all else constant, will lead to a higher number of winemakers employed but a lower market-clearing wage in the winemaker industry. e) market labor demand is typically more elastic in absolute value than market labor supply. f) a person who has a substitution effect that dominates his income effect will increase hours worked when an income tax is impo... click for more