Suppose That, in an Attempt to Reduce Unemployment Among Unskilled

question 178

Essay

Suppose that, in an attempt to reduce unemployment among unskilled workers and in particular young workers, the government introduces a "training" wage that is below the minimum wage and that can be used to hire new, unskilled workers. This wage would be paid for a period of up to six months, at which time the wage would have to be increased to at least the minimum level. Explain how this would reduce unemployment. Do you think unskilled workers would favor such a policy?

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Definitions:

Profit Maximizing

Profit maximizing is the process by which a firm determines the price and output level that returns the greatest profit.

Objective Approach

A method of decision-making or evaluation based on factual evidence and without the influence of personal feelings or biases.

Balanced Discussion

A conversation or dialogue that presents multiple perspectives in an unbiased and even-handed manner.

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An official paper that records agreements, understandings, rights, or obligations enforceable by law.