Labor Economics · intro
What moves on the Labor Market diagram
Labor demand reflects the value workers produce; higher productivity shifts it right, lifting wages and jobs.
Start at the market wage.
New tools make each worker more valuable, firms want more labor at every wage.
Ld shifts right: employment and wages rise together. Productivity is the engine of pay.
Examiners ask this as: productivity wages, labor demand rises, tech boosts workers.
Other scenarios on Labor Market