Suppose there is an increase in the average education level of the population. You would expect the equilibrium wage to increase and the equilibrium quantity of labor employed to increase . Please answer increase, decrease, or uncertain.

Respuesta :

Answer:

Both equilibrium wage and equilibrium quantity of labor employed are expected to increase.

Explanation:

Increase in average education level means there are more skilled workers. High-skilled labors often take the production of high-level products/services internationally or create new products/services. The value of output will increase, technical know-how and capital will accumulate.

That creates more work for lowe-skilled labor and incrase their productivity (imagine having better machine to clean the office of a new business of a group of young founders)

Increased productivity and more work to be done will increase both wage and employment.