labour markets

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Do Trades Unions Increase Wages?

Readers Question: The three factors which can explain the wage differentials in the South East and the North ? (1,living cost 2, MRP theory , 3 ??), can I say that trade union power in the South East is more strong ? I just guess and dont know whether that is an acceptable answer ? If you said trades unions could explain wage differentials between south east and north, it probably would be accepted. I would say: Higher wages in the south east could be explained by a higher trade unions…

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Immigration and the Black Market

Readers Question – what on earth is the black market and how does the immigrant have an impact on that? The Black Market refers to economic activity that is not regulated by the government. It involves economic activity where people don’t declare tax returns or pay VAT e.t.c. It sometimes may be referred to as the ‘underground economy’ or ‘black economy’. The black market may involve illegal activity such as drug dealing or it may involve typical jobs such as paying a builder in cash – this becomes black…

Male Inactivity Rates in UK

Male Inactivity Rates in UK

Readers Question ‘Evaluate two policies which the government might adopt to reduce the male inactivity rate’ Main Reasons for Inactivity in Labour Market Inactivity rates implies that people have left the labour market and are not able or are unwilling to seek employment. According to the ONS, inactivity rates can be caused by: Being a student Looking after family / home temporary sickness long-term sickness Discouraged Retired (early) Other Source: ONS (nov, 2011) Policies To Reduce Inactivity Rates 1. Make It more difficult to gain sickness /…

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UK National Minimum Wage

The minimum wage was introduced in the UK in 1999 at £3.30. As of October 2007 the minimum wage for adult workers is £5.52. (It will rise to £5.73 by end of 2008) There is a development rate for workers 18-21 of £4.60 For people under 18 (not of compulsory school age) the rate is £3.40 Source: National Minimum wage HMRC In this period 1999 – 2008, ILO  unemployment has fallen from 1,822,000  to 1.61 million or 5.25%. Claimant count method is even lower at less than 800,000 Readers Question and Essay: National minimum…

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Increasing Labour Market Flexibility and Information

Readers Question: Assess the effectiveness of government policies to increase labour market flexibility in the UK. It is difficult for the government to effectively increase labour market flexibility. However, this essay offers a few policies and evaluation of how successful they have been  Policies Include: Subsidised childcare provision – increase incentive for women to work. Increased spending on education and training Reducing power of trades unions and minimum wages Making it easier to hire and fire workers. New Deal It is argued that the UK labour market has become more flexible than European counterparts such as…

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Unit 5 Edexcel Economics

I want to know what topics to study for unit 5 Edexcel economics? Which are the important ones? If you are doing unit 5A Labour Markets the most important topics are: Determination of wages Impact of Trades Unions / minimum wages on labour markets Monopsony Flexible Labour Markets Government Intervention in Labour markets Unemployment in labour markets (more…)

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Minimum Wage in UK to rise to £5.73

The government has announced that the National Minimum wage will rise to £5.73 for workers over 21 – by the end of 2008. This means for a worker on a 40 hour week, their take home pay will be £229 per week. This also attracts top up benefits from the government in the form of family tax credits. Trades Unions had suggested that the Minimum wage should rise to £6.75 a rate, a rate which would lift workers out of needing government benefits. Employers, predictably, were happy that minimum wages…