How are wages determined in the U.S.? What are the most significant trends in wages over the past five years? Your answer should address the following:
a. Demand for labor
b. Minimum Wage legislation
c. Role of Unions
d. Outsourcing of jobs
Key points to be addressed in the paper:
• Determinants of the demand for labor at the firm and market levels
• What causes the demand curve to shift
• Consequences for the wage rate
• The effect of minimum wage legislation on market equilibrium
• Effect on demand and wage rate of outsourcing jobs
• Role of unions in wage determination – direct and indirect
