Explain two reasons why low-skilled workers may be highly paid.
Question
Explain two reasons why low-skilled workers may be highly paid.
Solution
-
Scarcity of Workers: One reason why low-skilled workers may be highly paid is due to the scarcity of workers willing to do certain jobs. For instance, jobs that are physically demanding, dangerous, or considered undesirable may not attract many workers. Therefore, to incentivize people to take up these jobs, employers may offer higher wages. This is often seen in industries like mining, construction, or waste management.
-
Unionization: Another reason could be the power of labor unions. In some industries, low-skilled workers are part of strong unions that can negotiate higher wages and better working conditions for their members. These unions have the power to bargain collectively with employers, and they can even organize strikes to pressure employers into meeting their demands. This can result in higher wages for low-skilled workers.
Similar Questions
Why are unskilled workers paid less than skilled workers?1 pointA There is a higher demand for unskilled labour than skilled labour.B There is a larger supply of unskilled labour than skilled labour.C Unskilled labour belong to trade unions.D Unskilled labour is more productive than skilled labour.
True or false: Though low-skilled laborers make much less in developing countries, no such difference in wages exists for high-skilled workers.True false question.TrueFalse
Casual workers often work in very poor working conditions. Justify the given statement.
Which of the following best describes the primary reason for wage differentials? Differences in employee performance Differences in job descriptions Differences in the cost of living Differences in the demand and supply of labor
All of the following are causes of unemployment EXCEPT:Group of answer choicesimprovement of technologyapplicants are under-qualified for the jobsimproved quality of educationapplicants are under-skilled
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.