Question

Starting with 1980’s economists within the neoclassical school have increasingly emphasize the
necessity of having a flexible labor market. One of the characteristics of the flexible labor market is increased level of mobility between sectors and occupations. Write a factor that can increase this kind of mobility within the labor market.

Answer 1

Minimum wage. A high national minimum wage may reduce the quantity of low paid jobs and reduce the number of part-time workers. On the other hand, a national minimum wage can make work more attractive and encourage people to enter the labour force.