EC120 Lecture Notes - Lecture 23: Efficiency Wage, Human Capital, Natural Monopoly
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EC120 Full Course Notes
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Document Summary
Critical to the valuation of human life: night shifts or inflexible schedules, compensating differentials as plus or minus, professional sports: Part compensation from access to team and prestige: economic development and charitable organizations. Use of unpaid internships or low paid work. University wage premium: education wage premium increasing in the us, international trade and low skill competition. Imports from countries produced with low skilled workers. Reduces prices for those goods in the us. Reduces demand for low skilled labour in the us: skill biased technical change: Reduces demand for these workers: changes in wage premiums are smaller in canada: Technological change in canadian industry slightly lower. Human capital: the accumulation of investments in people from education, on the job training, and experience, competitive firms pay for additional human capital: Limited incentive to pay for general skills training. Wages increase as worker could go elsewhere: human capital may be firm specific: Workers have little incentive to pay for this.
