“Readers Question – A microeconomics question. In you labour market section you discuss a monopsonist.You say that “in order to employ one extra worker the firm has to increase the wages of all workers”- why? You give a coal mine as a possible example of a monopsonist, do you really think that a coal mine owner hired an extra worker(the marginal cost) and then increased the “wages of all workers”? Can you clarify this. Just think of an upwardly sloping supply curve of labour.
Trade Union density refers to the percentage of the workforce who belong to a trade union. Since the early 1980s, there has been a steady decline in the density of trade union membership in the UK workforce. The decline in trade union density – matching the decline in trade union membership. (more…)
Recently a reader asked whether economic growth was increasing living standards and why economic growth was not leading to more leisure time in developed economies. – Is economic growth necessary? Not only is leisure time not increasing, but it is becoming more common for ‘special holidays’ to become just another retail day. In the US, stores used to be closed for the whole of Thanksgiving – an important national holiday. Traditionally a time for families to spend time together. However, the day after Thanksgiving is such a retail bonanza that…