EC120 Chapter Notes - Chapter 19: G1 Phase, Human Capital, Natural Monopoly
30
EC120 Full Course Notes
Verified Note
30 documents
Document Summary
Factors that drive workers to or against certain jobs. Dangerous jobs: mining, forestry, critical to the valuation of human life. Pro sports: office workers often paid lower wages, part compensation from access to team, prestige. Economic development, charitable organizations: use of unpaid internships or low-paid work. Education wage premium increasing in the u. s. Imports from countries produced with low-skilled workers: reduces prices for those goods in the u. s, reduces demand for low-skilled labour in the u. s. Skill-biased technical change: technology replaces low-skilled workers, reduces demand for these workers. Changes in wage premiums are smaller in canada: larger increase in education rates, technological change in canadian industry is slightly lower. Human capital is 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.
