As nations industrialize, surplus labor becomes scarcer and results in upward movements of wage rates

Question

Quizplus · Accepted Answer

As nations industrialize, they shift from primarily agricultural economies to ones focused on manufacturing and services, which increases the demand for labor in industrial sectors. This transition reduces the surplus labor available in the market, leading to a scarcity of labor. As a result, to attract and retain workers, employers are often compelled to increase wage rates, leading to upward movements in wages.

As Nations Industrialize, Surplus Labor Becomes Scarcer and Results in Upward