Suppose all workers and jobs in a hypothetical economy are homogeneous. Explain why no wage differentials would
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Suppose all workers and jobs in a hypothetical economy are homogeneous.
Explain why no wage differentials would exist if this economy were perfectly competitive and information and mobility were costless. Explain why wage differentials would arise if, on the other hand, information and mobility were imperfect and costly.
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Wages will trend towards the same equilibrium level if labor markets are highly competitive with similar employees and complete labor mobility However even for the same work earnings can vary signific...View the full answer
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Related Book For 
Contemporary Labor Economics
ISBN: 978-1259290602
11th Edition
Authors: Campbell R. McConnell, Stanley L. Brue, David Macpherson
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