A wage curve is a curve
that depicts the macroeconomic association between the levels of unemployment
in an area with respect to the availability of the jobs in that area. In simple
words, a worker who wants to work in a region where there is a high level of
unemployment tends to get a lower salary as compared to his counterpart in a
region where unemployment level is not that high.
The reason is simple as it
is more difficult to find the suitable workforce in areas where most of the
prospects are already employed, which calls for higher pay-rates
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