Wage Determination and the Allocation of Labor

Examine the wage determination, the allocation of labor, and the alternative payment schemes.

Explain at least four characteristics/features of a perfectly competitive labor market (many buyers and sellers, free entry, perfect information, wage taker, etc.) and explain the wage and employment determination in a perfectly competitive market and explain:

  • The Equilibrium;
  • Determinants of Labor Supply;
  • Determinants of Labor Demand.