Increasing a wage floor
Введено| English | Значение |
|---|---|
| wage bill/weɪdʒ bɪl/ | Фонд оплаты труда |
| labour mobility/ˈleɪbə məʊˈbɪlɪti/ | Трудовая мобильность |
A decision you can investigate
- A wage floor rises again after its first introduction. More workers offer labour at the higher wage, but employers in the supplied schedule want fewer hours.
- The size of the change depends on the response of both sides.
Build the explanation
- In the competitive model, a binding floor constrains wages above equilibrium. Raising it moves along existing labour-demand and supply schedules; it does not itself shift those curves.
- Retained workers can earn more per hour, while jobs or hours may change. Responsiveness, productivity, prices, compliance and staff retention matter when evaluating the actual result.
Work through the evidence
- At equilibrium W = 20, Qd = Qs = 100 hours. At W1 = 24, Qd = 80 and Qs = 120: excess supply = 40 hours. At W2 = 28, Qd = 60 and Qs = 140: excess supply = 80 hours.
- In this supplied model, employed hours fall from 80 to 60 and hourly pay rises. The wage bill 工资总额 changes from 24 × 80 = 1920 to 28 × 60 = 1680 yuan; a higher hourly rate does not guarantee a higher total wage bill.
What happens to employed hours in the supplied increase?
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Employment is constrained by demand at the binding floor in this model.
What is the later wage bill?
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Multiply the wage paid by hours employed: 28 × 60 = 1680.
Raising a wage floor causes a movement along the existing labour-demand curve.
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
True. The wage is the price of labour, so a higher floor moves along the demand curve; the curve shifts only if another determinant changes.
Test the limits
- The schedule is illustrative, not a forecast for every labour market. If demand is less responsive, employers may reduce hours less; improved retention or productivity can alter their costs.
- Evaluate enforcement and workers outside coverage. Hours offered, hours employed and the number of people unemployed are distinct measures.
Which condition could reduce the predicted fall in hours?
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
A smaller quantity-demand response changes the modelled employment effect.
Apply and explain your answer
- What is excess labour supply at the 28-yuan floor?
- 80 hours: 140 offered minus 60 demanded.
Match the terms to their meanings.
Сложность 2/5 · 140 монет + небольшой бонус за первое выполнение сегодня
Each term describes a specific mechanism in this lesson.
Use the terms precisely
- wage bill: Total wages paid, such as hourly wage multiplied by hours employed.
- labour mobility 劳动力流动性: The ability to move between locations or occupations for work.
At equilibrium W = 20, Qd = Qs = 100 hours. At W1 = 24, Qd = 80 and Qs = 120: excess supply = 40 hours. At W2 = 28, Qd = 60 and Qs = 140: excess supply = 80 hours. In this supplied model, employed hours fall from 80 to 60 and hourly pay rises. The wage bill changes from 24 × 80 = 1920 to 28 × 60 = 1680 yuan; a higher hourly rate does not guarantee a higher total wage bill.
The schedule is illustrative, not a forecast for every labour market. If demand is less responsive, employers may reduce hours less; improved retention or productivity can alter their costs. Evaluate enforcement and workers outside coverage. Hours offered, hours employed and the number of people unemployed are distinct measures.
In the competitive model, a binding floor constrains wages above equilibrium. Raising it moves along existing labour-demand and supply schedules; it does not itself shift those curves.
Write from a wage bill of 1200
- At 16 yuan, demand and supply are 90 hours. At 20 yuan, demand is 70 and supply is 110.
- At 24 yuan, demand is 50 and supply is 130. Compare the wage bills at 20 and at 24.
At a wage of 20 yuan, 70 hours are demanded and 110 are supplied. At 24 yuan, 50 hours are demanded and 130 are supplied. What happens to excess supply, employed hours and the wage bill?
The wage bill is the hourly wage times the hours demanded. Fewer employed hours can outweigh the higher rate.
What is the wage bill at 24 yuan?
Сложность 1/5 · 100 монет + небольшой бонус за первое выполнение сегодня
Employed hours are 50. 24 times 50 is 1200 yuan. The 130 hours are offered, not employed.