Analyzing Labour Market Policy Proposals

Evaluating a Minimum Wage Increase

A government implements a nationwide program offering free vocational retraining and job placement services for individuals who have been unemployed for over six months. Which primary objective of labour market policy is this program most directly designed to achieve?

Analyzing Competing Labour Market Policies

A government policy that significantly raises the national minimum wage is guaranteed to simultaneously achieve both primary goals of labour market policy: reducing unemployment and increasing the earnings of the lowest-paid workers.

Match each labour market policy with the primary objective it is designed to achieve.

Potential Trade-offs in Labour Market Policy

A government enacts a new law that substantially raises the minimum hourly wage for all workers. While this policy is intended to directly address the goal of increasing the earnings of the lowest-paid individuals, what is a potential unintended consequence concerning the other primary goal of labour market policy?

The Inherent Tension in Labour Market Policy Objectives

Besides increasing wages for the lowest-paid workers, the other primary objective of labour market policies is to decrease ____.

Role of Macroeconomic Models in Labour Market Policy Analysis