wages being sticky downwards meaning?

username3678760

^^^^

Sorry you've not had any responses about this. :frown:

Are you sure you've posted in the right place? :smile:

Here's a link to our subject forum which should help get you more responses if you post there. :redface:

Reply 2

Hasham123

15

this is when wages don't get lower than a certain point so they're sticky and because they won't get lower than certain point it's sticky downwards(when wages won't get higher than a point it's sticky upwards)

Reply 3

scruffyjo

12

Original post by oal1

^^^^

hi! it is basically used to reflect the asymmetry between changes of wages in the upward (increase in wages) and the downward (decrease in wages) direction.

Basically, when there is an increase in demand for labour, there would be a corresponding increase in the price of labour (aka. wages). However, when there is a decrease in demand for labour (eg. during a recession), it is unlikely that wages are able to decrease. This is due to factors such as labour unions, employment contracts, minimum wage etc. These factors prevent the labour market from responding to demand and supply.

Reply 4

username3678760

OP

8

Original post by scruffyjo

hi! it is basically used to reflect the asymmetry between changes of wages in the upward (increase in wages) and the downward (decrease in wages) direction.

Basically, when there is an increase in demand for labour, there would be a corresponding increase in the price of labour (aka. wages). However, when there is a decrease in demand for labour (eg. during a recession), it is unlikely that wages are able to decrease. This is due to factors such as labour unions, employment contracts, minimum wage etc. These factors prevent the labour market from responding to demand and supply.

thanks that helps a lot :smile:

wages being sticky downwards meaning?

Quick Reply

Related discussions

Latest

Trending

Trending

Articles for you