1
Q
Factors affecting wage growth
A
- Weaker labour productivity:
- Higher level of immigration
- Unemployment
- Declining union membership
2
Q
Weaker labour productivity:
A
rises in efficiency appear to come form use of capital rather than labour resources = new technology. Therefore owners will receive increase incomes relative those of unskilled workers.
3
Q
Immigration:
A
means increase in supply for labour thus slow wage growth
4
Q
Factors leading to labour shortage
A
can occur in any economy when demand for labour exceeds supply and unemployment rate is low
5
Q
A
