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ECON 3341 SMU Relative Wages Efficiency Wages & Unemployment Discussion Questions

ECON 3341 SMU Relative Wages Efficiency Wages & Unemployment Discussion Questions

Question Description

Assignment 2 : Read CH 13, 16 & 17 and answer the following essay type questions 15 points out of final grade

1. Discuss the pros and cons of efficiency wages as opposed to deferred compensation as compensation systems to deter shirking and encourage work effort. (20 points)

2. Explain the concept of hidden unemployment, or marginal labour force attachment. Discuss the pros and cons of including the hidden unemployed in our unemployment statistics. (20 points)

3. Explain why some job losers find new jobs relatively quickly at wages similar to those in their previous job, while others take longer to become re-employed and often earn much less in their new job. What policies might be implemented for those who experience large losses from job displacement. (20 points)

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