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How healthy is UK economy?

How healthy is UK economy?. UK unemployment rate: 7.8%. Trade Unions . The impact of union intervention on the labour market. Effects of trade union representation wage bargaining . Wage. S tu. S. W tu. W e. D. Quantity of labour. Q 1. Q e. Q 3.

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How healthy is UK economy?

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  1. How healthy is UK economy?

  2. UK unemployment rate: 7.8%

  3. Trade Unions

  4. The impact of union intervention on the labour market

  5. Effects of trade union representation wage bargaining Wage Stu S Wtu We D Quantity of labour Q1 Qe Q3

  6. Effects of trade union representation on supply Wage Stu S Wtu Unions may reduce the supply of labour by maintaining certain controls on the numbers of new recruits. This may be done by supporting the retention of a lengthy training period, as in the law or accountancy, or insisting on union membership before somebody can enter a job, for example, the acting profession. Trade union intervention can have the effect of separating the market into two; the unionised sector with high wages and good working conditions and the non-unionised sector with a higher supply of labour and worse pay and working conditions. This is known as the insider and outsider problem. We D Quantity of labour Q1 Qe

  7. The case for the minimum wage

  8. Minimum wage • A law that is passed which means that no employer can pay an employee below the set rate • ‘Living wage’ in the UK: This is calculated by the Centre for Research and Social Policy at Loughborough University. They have calculated an amount that the average person needs to stay out of poverty in the UK. It varies across the UK, in London as of November 2012 it stands at £8.55 and in the rest of the UK £7.45. • The minimum wage was introduced to the UK in 1998.

  9. Minimum wage • Why are there 4 categories? • Why do you think that the minimum wage has dropped below the ‘living wage’? • What might happen in the UK now if the minimum wage was increased to the level of the ‘living wage’?

  10. Why have a minimum wage? Which parts of the world are most equal? Which parts of the world are most unequal?

  11. Case Study: The minimum wage in Hong Kong • Describe life in Hong Kong and how it is changing • What reasons are given for introducing a minimum wage? • What reasons are given for not introducing a minimum wage?

  12. Can the minimum wage cause unemployment? Wage Stu S Wmin We D Quantity of labour Q1 Qe Q3

  13. The minimum wage Arguments for Arguments against

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