Question:
Why can Low Skilled Jobs greatly Affect the Elasticity of Labour Supplied
Author: eric_galvaoAnswer:
-Low-skilled jobs result in the Supply of Labour being more Elastic. A Small Rise in the Wage Rates creates a Bigger % in the Quantity of Workers Supplied. This can be due to a Large Pool of Unskilled Workers, and More being Unemployed and Looking for Work -Furthermore, low-skilled jobs usually have similar wage Rates. If one Low Skilled Job increases its wages by a Small Amount, it leads to a greater Force of Workers moving into the Firm
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