![]() ![]() ‘It was … obvious … that it was coming to an end,’ Doug said.Īnd it did. We had that in the back of our minds.’ Their dream economy couldn’t last. ‘Everybody knew the economic downturn and commodity prices were a problem. Both father and son were putting away substantial savings.īut by 2015 the natural resource boom was a distant memory, and the price of ore and zinc continued to plummet. Rob lived in Thailand for a time, spending little, and flying into his job in Borroloola.Ībout when Rob started work, Doug, the elder Grey, took a job at the Pilbara iron ore mine in Western Australia (WA), which paid about twice the average family income in Australia at the time. He entered the labour market just as the worldwide natural resources boom was taking off, driven by the demand from the rapidly growing economy of China. Rob, it seemed then, had been born at the right time. ‘I ended up driving ore trucks,’ Rob reminisced, ‘That was an awesome opportunity.’ In the 1990s, he helped construct the MacArthur River zinc mine, one of the world’s largest, where his son Rob got his first job. Unions and public policies can affect labour market equilibrium.Īs in many parts of the world, mining was a way of life for Doug Grey, a rigger who operated giant cranes at mines in the Northern Territory, Australia.If economy-wide demand for goods and services is too low, unemployment will be higher than its equilibrium level and may persist.Excess supply of labour (involuntary unemployment) is a feature of labour markets, even in equilibrium.The outcome of the price-setting process across all firms is the price-setting curve, which gives the value of the real wage that is consistent with a firm’s profit-maximizing markup over production costs.The prices that firms charge for their products are influenced by the demand for their goods and the cost of labour, the wage.The outcome of the wage-setting process across all firms in the economy is the wage-setting curve, which shows the wage associated with each unemployment rate. ![]() As we saw in Unit 6, the principal–agent model is used to explain the conflict of interest between the employer and the employee over how hard the worker works, and why this issue cannot be resolved by a contract.The labour market functions quite differently from the bread market described in the previous unit because firms cannot purchase the work of employees directly but only hire their time.How the economy-wide market for labour determines wages, employment, and the distribution of income ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |