For wage rates to be the same in various labor markets, four conditions must exist: (1) demand for every type of labor must be __________; (2) no special __________ aspects to any job; (3) all labor is ultimately __________ and can __________ be trained for different types of employment; and (4) all labor is mobile at __________.

Question

Quizplus · Accepted Answer

For wage rates to be the same across different labor markets, the demand for every type of labor must be the same (uniform across industries or job types), there should be no nonpecuniary (non-monetary) aspects that make some jobs more desirable than others, all labor must be homogeneous (similar in skills and abilities) and able to be trained for different types of employment without cost, and all labor must be able to move freely at no cost.

For Wage Rates to Be the Same in Various Labor