Monday, March 16, 2020

consider the market for labor. If the price of oil falls by 30%, how would it affect wage rate and employment?

Douglass Sarley: oil price increases result in a substantial decline in real wages for all workers, but raise the relative wage of skilled workers. changes in oil prices induce changes in employment shares and relative wages across industrieslittle evidence that oil price changes cause labor to consistently flow into those sectors with relative wage increases....Show more

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