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Next question, we have to tell how wages are determined in usa, particularly labour wages are determined in usa.
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Second, what are the most significant trends in wages over the past five years? here we have to address the demand for labour, minimum wage legislation role of union outsourcing of jobs and also we have to address the determinants of labour demand at firm and market level and what were the causes of demand, corporate shift and the consequences for wage rate.
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Also, the effects of minimum wage legislation on the market equilibrium, their effect on demand and wage rate due to outsourcing job roles of union in wage determination, direct and indirect.
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So, the question is divided into several different categories.
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Let's start one by one.
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So, wages in the us are determined by various factors and market forces.
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The following key points address how wages are determined and significant trends in wages over the past five years.
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First is the demand for labour.
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The demand for labour is influenced by factors such as first, the overall state of the economy, its industrial growth, technological advancement and individual firm specific needs.
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Second, the determinants for demand of labour are first, the demand for labour can be influenced by several factors such as the consumer demand for goods and services.
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Second, the advancement in technology that require different skill sets.
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The fluctuation in the input cost is another determinant of labour's demand.
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Next, the changes in the production processes.
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This could include like increased consumer demand or technological innovation that may lead firm to hire more workers, increase the demand for labour and potentially driving up the wages.
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Now, the third is the shift in the demand curve.
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Changes in the determinants of labour demand can shift the demand curve for the labour.
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For instance, if there is an increase in the consumer demand for particular commodity, let's suppose example t, the firm may need to expand the production and hire additional workers, leading to an outward shift to demand curve.
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Let's suppose this is y -axis, x -axis, zero, initial point, demand for the t, initial demand for t was at bd, d1.
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Now, since the demand is rising, the firm will hire more workers.
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Therefore, the demand will shift upwards to the right, d1 to d2, leading to an outward shift to demand curve.
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Similarly, technological advancement that replace labour with automation and ai may decrease the demand for certain type of jobs, causing the shift of demand curve inward.
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Let's suppose we take example of robots as a replacement for the labour.
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So, with increase in the robots, the labour demand will decrease.
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It can be shown with this.
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So, this is the demand curve.
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With increase in the robots, the labour demand is decreasing, y -axis, x -axis.
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Moving on, fourth is the regarding consequences of, consequences for the wages rate.
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So, changes in the demand for labour can affect the wage rate.
07:28
When demand for labour increases, the firm will, may be willing to pay higher wages to attract and retain more workers in the production process...