Assume that the supply of low-skilled workers is fairly elastic,
but the employers’ demand for such workers is fairly inelastic.
Answer the following questions with supply and demand diagrams. a)
If the policy goal is to expand employment for low-skilled workers,
is it better to focus on policy tools to shift the supply of
unskilled labour or on tools to shift the demand for unskilled
labour? [10 marks] b) What if the policy goal is to raise wages for
this group? Is it better to focus on policy tools to shift the
supply of unskilled labour or on tools to shift the demand for
unskilled labour? [10 marks]
Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such workers is fairly in
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Assume that the supply of low-skilled workers is fairly elastic, but the employers’ demand for such workers is fairly in
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