ECON 2010 Lecture Notes - Lecture 33: Human Capital, International Trade, Market Power
3 Jan 2016
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How much each worker produce and the value of. Measured by productivity their work: high skill workers earn high wages, low skill earn low wages. Why might workers be paid mpl: competitive labor markets, monopsony (firms had market power, wages rise with productivity. Lesson: productivity is most important determinant of wages. Focus on low skill (particularly illegal) immigrant. Real wages of low-skill u. s. men falling since late 1970s. What do we expect to happen to wages of low-skill workers: competition for jobs, lower wages because of more employees, immigration small role, technological advances make them obsolete, international trade demand. Early part of life about increasing human capital. How: education, life experience, work experience. Demand: firms value workers with a large amount of human. Male college grads earned 75% more than high school grads in 2011. Female college grads earned 81% more than high school. Expected lifetime earnings increase from completing college grads in 2011 was ,000.
