labour markets

Policies to deal with the free movement of labour

Policies to deal with the free movement of labour

In this recent post we saw some of the economic and political challenges of allowing free movement of labour within an economic block, such as the EU28. To what extent can the government / EU mitigate these negative impacts, whilst retaining free movement of labour? 1. Funding related to number of people. One issue of free movement of labour is that certain areas can see a sudden influx of migrants, which places a stress on social services, housing and possibly wages. If government spending was more flexible, higher public funds…


Questions on monopsony

“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.


Is 24 hour, 365 day a week shopping a sign of progress?

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…