Illustrate your answer with graphical analysis. Answer using the Laws of Derived Demand. Answer using the Laws of Derived Demand. Comment on the view that minimum wages have had a dramatic effect on poverty levels in the United States. Unions should target inelastic labor demand sectors.
Minimum wages can cause some wages to fall.
Average compensation for U.S. executives is higher than in Europe or Japan. Some have argued that this is related in part to efforts in the U.S. to tie executive wages to marginal revenue products. Capital-labor ratios in India are much lower than in the United States. Rising wage inequality in the United States is evidence of rising levels of discrimination against women and minorities. With respect to the labor market, define employment rate, unemployment rate, labor force participation rate, and population.