Wage differentials
What Wage differentials means in Economics A-Level, as defined for AQA.
Definitions of Wage differentials
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Reference: AQA
Variations in pay stemming from differences in education, skills and trade union power, which influence the distribution of income.
Differences that naturally emerge from the interaction of market forces such as labour demand and labour supply.
Topics that use Wage differentials
- The determination of relative wage rates and levels of employment in perfectly competitive labour markets (AQA A-Level)
- The distribution of income and wealth (AQA A-Level)
Related terms
- Asset Ownership
- Asset Price Inflation
- Equality
- Equity
- Equity vs efficiency
- Flow vs Stock
- Gini coefficient
- Government intervention
Using Wage differentials in the exam
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