Should skilled workers be paid more than unskilled workers? (8 marks)

Skilled workers are likely to have higher productivity so the firm will gain more revenue. They can also demand more pay as they are inelastic in supply (can draw a diagram to show this however not needed), any increase in demand will lead to higher increase in wage. Also skilled workers have more bargaining power in a trade union due to their inelastic supply as their withdrawal from employment could be more detrimental to the firms than unskilled workers. Time spent in education and training should be compensated through pay.

Answered by Maryum J. Economics tutor

13980 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

Explain, using an example, what is meant by 'opportunity cost'?


Using Figure 5, assess whether the decision to install the machine (used in production in an independent fast food shop) will be beneficial for the business and the workers.


Evaluate the view that perfect competition is a more efficient market structure than monopoly.


With reference to a poverty trap (poverty cycle), explain how “investing in human development is crucial to ... reducing poverty”


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences