3.5.3

Question 1

What are the main causes of differentials in wages between occupations?

Answer 1

-Compensating wage differentials
-Different skill set
-Differences in labour productivity and revenue creation
-Trade unions
-Artificial barriers to labour supply
-Employer discrimination

Question 2

What is compensating wage differentials for a cause of differences in wages in occupations?

Answer 2

For reward, risk-taking, working in poor conditions and unsocial hours.

Question 3

What is different skill set for a cause of differences in wages in occupations?

Answer 3

Market demand for skilled labour grows more quickly than for semi-skilled workers.

Question 4

What is differences in labour productivity and revenue creation for a cause of differences in wages in occupations?

Answer 4

Workers whose efficiency is high and generate revenue for a firm often have higher pay.

Question 5

What do trade unuions do to cause differences in wages in occupations?

Answer 5

Might use their collective bargaining power to acheive mark-up on wages compared to non-unuion members.

Question 6

What are artificial barriers to labour supply for a cause of differences in wages in occupations?

Answer 6

Professional exams needed for a job or migration controls.

Question 7

What is employer discrimination for a cause of differences in wages in occupations?

Answer 7

A factor that cannot be ignored despite many years of legilsation in place.

Question 8

What is the gig economy?

Answer 8

Fragmented work where someone is given a task for a certain amount of time.

Question 9

The Gig economy is a labour market which is characterised by?

Answer 9

Short-term contracts or freelance work

Question 10

What are the benefits of a gig economy for businesses?

Answer 10

-Reduced fix costs- lower payroll expenses.
-Reduced investment, such as ubers use own vehicles.
-Flexibility in managing hours for expected demand for products.

Question 11

What are the benefits of a gig economy for workers?

Answer 11

-Flexible hours/ control over when to work
-Ability to work from hour (more autonomy)
-A common way for people to earn extra income
-Less risk of getting stuck in routine jobs

Question 12

What are the drawbacks of the gig economy for workers?

Answer 12

-Doubts of true flexibility of hours
-Lack of paid vacation/sick/leave
-Job and income uncertainty make it harder to get a mortgage
-Inadequate investment in worker training

Question 13

What are wider issues of the gig economy?

Answer 13

-Shrinking of the tax base will hit revenues
-Reductions in road safety/ more accidents (delivery drivers usuing un-licensed vehicles)

Question 14

What are the possible microeconomic effects of an ageing population?

Answer 14

-Changing patterns of consumer demand in markets affects profits for businesses.
-Impacts housing market
-Impact on labour market for different jobs.

Question 15

What are the possible microeconomic effects of an ageing population?

Answer 15

-Impact on government welfare spending and future tax revenues.
-Impact on the rate of growth of productivity and long-term GDP growth
-Impact on UK competitviness if the median age continues to rise rapidly.

Question 16

What are the possible microeconomic effects of robotics?

Answer 16

-Impact on productivity, costs and profits of firms/industries at cutting edge.
-Impact on demand for, supply of labour in specific jobs and the real wages paid.
-Impact on consumer welfare, lower prices

Question 17

What are the possible macroeconomic effects of robotics?

Answer 17

-Effects on employment and unemployment from extensive capital-labour substitution
-Effects on competitiveness and exports and changing patterns of trade
-Effects on government financing

Question 18

What are the factors behind trade union declines?

Answer 18

-Impact of legislation that reduced power for industrial action
-Rise in flexible markets
-De-industrialisation
-Globalisation has reduced bargaining power of employees.

Question 19

What are a trade unions key role?

Answer 19

-Protecting and improving real living standards/wages
-Protecting workers against unfair dismissal
-Promoting improvements in working conditions, work-life balance
-Promoting better workplace training
-Protection of pension rights

Question 19

long-term decline in union membership impacts the trade union and labour market how?

Answer 19

Reflects growing flexibility of UK labour market including zero-hour contracts and decline of heavy industry and shrinking public sector

Question 20

Trade union influence on pay impacts the trade union and labour market how?

Answer 20

It depends on trade union density in an industry and the credible threat power they have with possible industrial action