The data below show real wage levels at various percentiles of the wage distribution for
material-handling labourers in New Zealand.

Percentile	1975	1995
10th	4.26	2.97
50th	6.02	3.89
90th	10.44	9.07

A. Calculate w90/w50, w50/w10, and w90/w10 percentile wage differentials for both
years.
B. Describe the changes in wage inequality in this local market

C. Use the relative demand and supply model to explain the effect of increased immigrants into this labour market on relative wage and employment outcomes

Answer rating: 100% (QA)

A Calculations Calculate w90w50 for 1975 w90w50 1044 602 1734 Calculate w50w10 for 1975 w50w10 602 4... View the full answer