In the wage setting relation W = PeF (u, z), the variable z includes which of the following variables?

Question

Quizplus · Accepted Answer

The variable z in the wage setting relation can include all of the above variables. The minimum wage, level of employment protection, amount of structural change in the economy, and unemployment benefits can all impact the bargaining power of workers and influence the wage setting process. Therefore, they can all be included as factors in the variable z.

In the Wage Setting Relation W = PeF (U, Z)