Suppose an island economy has only two labour markets - fishing (high skill)and farming (low skill).There are 1000 males and 1000 females in the labour force.There is an equal distribution of skilled and non-skilled workers among each sex. FIGURE 14-1
-Refer to Figure 14-1.Suppose the employers in the fishers labour market begin to discriminate against male workers.Which of the following can we expect to occur in the farmers labour market?

Question

Suppose an island economy has only two labour markets - fishing (high skill)and farming (low skill).There are 1000 males and 1000 females in the labour force.There is an equal distribution of skilled and non-skilled workers among each sex.  FIGURE 14-1
-Refer to Figure 14-1.Suppose the employers in the fishers labour market begin to discriminate against male workers.Which of the following can we expect to occur in the farmers labour market?

Quizplus · Accepted Answer

When employers in the fishers' labor market discriminate against male workers, these workers may seek employment in the farmers' labor market, increasing the labor supply there. This shifts the labor supply curve to the right, leading to a new equilibrium at point D with a lower wage of $60 per day.

Suppose an Island Economy Has Only Two Labour Markets -