The way jobs are organized in a market can have a big impact on how money is shared and how many people live in poverty. Here are some key points to understand:
Wage Differences: In some job markets, like those with monopsony power, workers often earn less money. For example, in 2020, a typical worker in the UK made £586 each week. However, the workers who earned the least, in the bottom 10%, only took home about £299.
Job Availability: In competitive job markets, there are usually more jobs available. This helps lower unemployment rates, which were about 4.5% in 2019. On the other hand, when one company controls a lot of the jobs (monopolistic structures), it can make poverty worse.
Skill Gaps: In areas where there are many jobs for skilled workers, people tend to have lower poverty levels. For instance, skilled workers typically earn around £16,000 a year, while those without skills make about £12,000.
In summary, the structure of the labor market plays an important role in how people earn money and who faces poverty.
The way jobs are organized in a market can have a big impact on how money is shared and how many people live in poverty. Here are some key points to understand:
Wage Differences: In some job markets, like those with monopsony power, workers often earn less money. For example, in 2020, a typical worker in the UK made £586 each week. However, the workers who earned the least, in the bottom 10%, only took home about £299.
Job Availability: In competitive job markets, there are usually more jobs available. This helps lower unemployment rates, which were about 4.5% in 2019. On the other hand, when one company controls a lot of the jobs (monopolistic structures), it can make poverty worse.
Skill Gaps: In areas where there are many jobs for skilled workers, people tend to have lower poverty levels. For instance, skilled workers typically earn around £16,000 a year, while those without skills make about £12,000.
In summary, the structure of the labor market plays an important role in how people earn money and who faces poverty.