Loss is greater than the shaded area. Actual amount of unemployment and total wages. Total wages earned decrease. Total wages earned increase. A Model Based on the Assumption that Workers Differ Two kinds of differences Different qualities of labor.
Jobs have different requirements.
Increase in independent contracting. Substitution of labor-saving techniques of production. Substitution of pay for fringe benefits. Incentives to violate the law. Consumers' surplus falls from aed to achg in Figure 11-12.