Question

Explain the casual relationship between wages and employment

Answer 1

The relationship in between wages and employment is considered to be a highly controversial issue. It tends to be different and changes with regions, industries, employment level, etc.

Statistics are used to determine the relationship in between employment and wages. The closer the correlation value is to 1, the stronger is the relationship in between the wages and employment.

Temporary employees are paid lesser wages than the permanent employees.

There have been theories suggesting that wage-cuts are also correlated with the increase in the unemployment rate.