Answer to Question #237010 in Microeconomics for keetu

Question

Based on the aforementioned, you have been tasked as an advisor to the Ministry of employment and
labour within the South African government and asked to provide an essay / report on the impact of the
South African economy’s global integration on supply and demand mismatches in the labour market,
consequently discussing what this entails for wage inequality levels within the country. Government
has asked that you focus on the following aspects in your essay/report:

Answer 1

South African economy’s global integration has increased the integration of labor markets thereby closing the wage gap between workers in advanced and developing economies through the spread of technology. The integration has also reduced the barriers to demand and supply of labor in South Africa economy. Effective integration has yielded positive impact on the economy because it entails fully using skills by the parties and realizing their economic potential. Through integration the skilled has interact with unskilled thereby equipping the unskilled with the necessary skills. Therefore, the supply of labor will increase till demand decreases. This has led to a reduces wage inequality among the South Africa citizens.