One of the most important market is the Labour Market – how does pricing work and how are wages and unemployment levels determined? Economists have tended not to favor raising minimum wage because they seem to cause the price mechanism to fail and can lead to greater unemployment. At the same time, globalizing forces have impacted the labour market in profound ways. This week we will explore the traditional view about the labour market, David Card's empirical study and why the pricing of labor continues to be a very urgent and contentious issue in our world.

Lesson Objectives -
1. Explain how pricing of labor is determined
2. Define labor, minimum wage and living wage
3. Reflect: What are the economic assumptions about labour and how do these advantage some while they disadvantage others?
4. Comment on 2 peers' reflections