Labour Markets Question (2 Viewers)

[BandarSingh]

Hey guys


Does any one know the difference between labour deregulation and labour decentralization?

 

[freeeeee]

same thing

 

[BandarSingh]

Well that's what I thought, but it's a question in the leading edge workbook on page 251 and it's worth 2 marks so yeah :/

 

[bobmcbob365]

I doubt they'd ask this in the actual HSC, but deregulation just means the removal of government regulation or controls over the labour market, which then allows for a decentralised wage determination system. Decentralisation is where wages are determined by market forces and are negotiated between the employer and employee, rather than being determined by the government.
The two overlap, but basically, deregulation facilitates for decentralisation. So deregulation is the action that the government takes. Decentralisation describes the type of wage determination.

Hope that doesn't confuse you lol.

 

[BandarSingh]

I doubt they'd ask this in the actual HSC, but deregulation just means the removal of government regulation or controls over the labour market, which then allows for a decentralised wage determination system. Decentralisation is where wages are determined by market forces and are negotiated between the employer and employee, rather than being determined by the government.
The two overlap, but basically, deregulation facilitates for decentralisation. So deregulation is the action that the government takes. Decentralisation describes the type of wage determination.

Hope that doesn't confuse you lol.

Nah man not confusing at all! Thanks for your help man

 

[bobmcbob365]

Btw, I'm pretty sure there are answers for that workbook on the internet. Find the Leading Edge website. It should be there somewhere.

 

[asadass]

http://leadingedge.com.au/publications/hsc-economics-workbook/

 

[Leffife]

Just remember:

Decentralisation is where wage and working condition for the worker is essentially determined when the individual negotiates with the employee for more $.
Deregulation is where the government doesn't control the labour market, whereby the market forces only determine the wage of the employer.

 

[Leffife]

employer.

I meant employee.