Skilled Workers The Job Markets Of America â€Myassignmenthelp.Com

Question: Discuss About The Skilled Workers The Job Markets Of America? Answer: Introducation The demand-supply diagram of describes the scenario of demand for quality higher education at a particular price and the supply of quality education at that price. As per the above diagram, the downward sloping demand curve describes that the investment or demand for quality education decreases as the price for quality higher education increases. The positively sloping supply curve describes that with higher payment of price or investment the supply of higher education increases. Thus the demand-supply curve describes the scenario that the price or cost of earning a higher education degree with good quality is rising over time. At the equilibrium price P* the demand for higher education is Q*.If the cost or price rises to P1, then the demand for higher education is expected to decreases to Q3 but at this price the supply of higher education is S3.Thus if the cost or price of higher education increases then there will be a excess supply gap of higher education by the amount of Q3S3.Similarly if the cost of earning higher education decreases then there will be a excess demand gap for higher education by the amount of Q2-S4 When firms are hungry for skilled workers, their demand for university graduates grows When the firms are showing a higher demand for skilled workers who are supposed to be the university graduates, the demand for university education increases as indicated by the outward shift of the demand curve from D1 to D2 in Figure-2.With the new demand curve D2 when the price or cost of earning of an university degree increases and reaches to P1 then the demand for the education will be Q3.Thus increase in the demand for university graduates will enhance the demand for higher education even if the cost of earning the education increases and the new excess supply gap of higher education at price P1 will be Q3S3 which is less than the previous supply gap of Q3S3 at the same price P1. College wage premium The term College wage premium refers to the gap between the average salaries offered to the university graduates and that of secondary-school degree holders. The European labour market has become saturated enough with skilled labour or the university graduates due to the rapid change of that market. Due to the market saturation as well as the requirement of maintaining a generous minimum wage for all, the college premium is relatively flat in Europe. A discussion over the usefulness of the university degree The university degree is often considered as a good investment as in America and in the euro zone the university graduates manage to earn good pay packages (Economist.com, 2017). Thus it can be seen that although return from investment in higher education is little uncertain, but still there is a good scope of earning good payment due to existence of healthy demand for skilled workers in the job markets of America Euro zone. Reference: Economist.com. (2017).Wealth by degrees. [online] Available at: https://www.economist.com/news/finance-and-economics/21605909-returns-investing-university-education-vary-enormously-wealth [Accessed 23 Sep. 2017].