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Economic theory

Work and what it pays

How a wage is set, what a union or a minimum wage does to it, and who ends up with what.

Start: The demand for labour

The 10 modules

Each module teaches one idea: a definition, how it works, and questions through the page. Take them in any order.

1The demand for labourSay why the demand for labour is derived demandConcept · 7 min · Free 2The supply of labourSay what moves the supply of labour to an occupationConcept · 7 min 3How a wage is set in a competitive marketExplain how demand and supply settle a wageHow it works · 6 min 4Why wages differ between jobsExplain why two jobs in one economy pay differentlyHow it works · 7 min 5MonopsonySay what a monopsony is and what it does to the wageConcept · 7 min 6Do trade unions raise wages?Weigh the case each way on union wage bargainingDebate · 6 min 7Does a minimum wage cost jobs?Weigh the case each way on whether a minimum wage costs jobsDebate · 6 min 8Absolute and relative povertyTell absolute poverty from relative povertyTell them apart · 6 min 9The Lorenz curve and the Gini coefficientRead inequality off a Lorenz curve and say what a Gini number meansCalculation · 7 min 10Does discrimination survive a competitive market?Weigh the case each way on labour-market discriminationDebate · 6 min