4. Whether the payroll tax is assessed on workers or firms makes a difference in the labor market outcomes and changes the equilibrium wages and employment in a competitive labor market. 5. The skill-biased technical change (SBTC) hypothesis states that if the technological advances that are being introduced constantly into the labor market are good substitutes for unskilled workers and complement the skills of highly educated workers, this type of technological change would lower the demand for unskilled labor and increase the demand for skilled labor. 6. Suppose there are two economies, A and B. Economy A suffers from a high degree of skills mismatch between workers and firms, while the mismatch problem is less severe for Economy B. Then the steady-state unemployment rate is higher in Economy A than in Economy B, because the fraction of employed workers who lose their jobs and become unemployed is higher in Economy A than in Economy B.

4. Whether the payroll tax is assessed on workers or firms makes a difference in the labor market outcomes and changes the equilibrium wages and employment in a competitive labor market. 5. The skill-biased technical change (SBTC) hypothesis states that if the technological advances that are being introduced constantly into the labor market are good substitutes for unskilled workers and complement the skills of highly educated workers, this type of technological change would lower the demand for unskilled labor and increase the demand for skilled labor. 6. Suppose there are two economies, A and B. Economy A suffers from a high degree of skills mismatch between workers and firms, while the mismatch problem is less severe for Economy B. Then the steady-state unemployment rate is higher in Economy A than in Economy B, because the fraction of employed workers who lose their jobs and become unemployed is higher in Economy A than in Economy B.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

true or false
True or false please quickly answer
Explanation sir and tees ams
1 and 2 done, need the rest
True/False Please be brief ?
Please do all the q
17 please help me quickly
Write if the statement is TRUE or FALSE
true or false answer please ty
Equity investments are loan it the issuers of the equities. True or false
Please help me quickly solve all they related
True or false with explanation