Wage Structure at a Software Company
A software development company has two tiers of programmers: 'Senior' and 'Junior'. Both groups write code for the company's main product, but Senior programmers are paid a significantly higher salary than Junior programmers. Identify one simplifying assumption of the single-firm wage-setting model that this company's pay structure violates, and briefly explain your reasoning.
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Ch.1 The supply side of the macroeconomy: Unemployment and real wages - The Economy 2.0 Macroeconomics @ CORE Econ
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A manufacturing firm needs to hire new assembly line workers. To fill the positions quickly, the HR department makes a public job offer at a fixed hourly rate. They successfully hire several workers, one of whom was previously employed at a competing factory across town, while the others were not working at the time they applied. Based on this situation, which simplifying assumption of the single-firm wage-setting model has been violated?
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