Tài liệu The analysis of factor markets: labour

Some important questions
Why does a top professional footballer earn so much more than a professor?
Why does an unskilled worker in the EU earn more than an unskilled worker in India?
Why do market economies not manage to provide jobs for all their citizens who want to work?
Why are different methods of production used in different countries?

The demand for labour
Derived demand:
–the demand for a factor of production is derived from the demand for the output produced by that factor.
Equalizing wage differential
–the monetary compensation for the differential non-monetary characteristics of the same job in different industries
–so workers have no incentive to move between industries.