Labour Productivity (1 Viewer)

[Medium143]

Currently revising for the upcoming trials, and came across a question I'm not quite sure how to answer - would appreciated any advice.

"Explain how labour productivity has been increased through microeconomic reform in the labour market.

Thankyou.

 

[Sparcod]

Currently revising for the upcoming trials, and came across a question I'm not quite sure how to answer - would appreciated any advice.

"Explain how labour productivity has been increased through microeconomic reform in the labour market.

Thankyou.

I can give you a few hints to start you;

1/ You should know how to define microeconomic reform.

The term microeconomic reform refers to policies directed to achieve improvements in economic efficiency. (Your definition should be broader and more detaile)

2/ You should know what policies were used and their impacts. (Note the word 'how' in the question.)

For a bit more info, please see BIKI

 

[Demandred]

When you're doing this, you must keep in mind and distinguish between a REDISTRUTION of benefits v ACTUAL gain.

Most reforms are plagued by the thoery of second best, that in absence of perfect competition, deregulation and microeconomic reform would lead to uneven balances within the markets and worsen the distortions within the market.

Welfare gains from deregulations can simply written off as a redistribution of resources form the works/consumers to business owners through deteriotation of quality, reduction in wages, and the bypass of market discipline such as bankruptcy and takeovers.

Gittens wrote an great article about the labour market:

http://www.smh.com.au/news/business...heir-fair-share/2007/06/01/1180205514393.html