Holding other factors constant, if the education and skills of the typical worker in an economy increases, then the real wages of workers will __ and employment of workers will _.

Increase in education means increases in productivity all things being equal. This increase in productivity will lead to more demand for labor as the market will be attracted by the quality of labor.

The increase in demand for labor will lead to increase in wages all things being equal. This means the demand curve for labor will shift to the right.

Answer Link

Holding other factors constant, if the education and skills of the typical worker in an economy increases, then the real wages of workers will ______ and employment of workers will _____.

Respuesta :

Otras preguntas

Holding other factors constant, if the education and skills of the typical worker in an economy increases, then the real wages of workers will __ and employment of workers will _.