Wage differentials refer to the differences in pay between workers, groups, or different types of jobs. These gaps
Glossary Category: Economics
monopsony
A monopsony occurs when there is only a single buyer in a market. In a labour market, a
national minimum wage
A national minimum wage (NMW) is the lowest hourly pay rate that employers are legally required to pay
trade unions
A trade union is an organized group of workers who join together to protect and improve their rights
equilibrium wage rate
The equilibrium wage rate (W*) is the specific wage level where the number of workers employers want to
wage determination in perfect markets
In a perfectly competitive labour market, wages are set by the interaction of labour demand and labour supply.
movement along supply curve of labour
A movement along the labour supply curve happens only when the wage rate changes. This change leads to
shifts in supply curve of labour
A shift in the labour supply curve happens when the amount of labour workers are willing and able
factors affecting supply of labour
The supply of labour is determined by wage and non-wage factors that influence how many people are willing
movement along demand curve for labour
A movement along the demand curve for labour happens only when the wage rate changes. This causes a