The labor market


The Japanese population is projected to decrease by 25 percent
by 2050, and the proportion of the elderly population

is expected to increase from 20 percent to about 40 percent.

Illustrate the effects of those changes on the labor market

using a graph.

Q354: Over time, the gap between the wages of workers with

college degrees and the wages of workers without college

degrees has been increasing. Shouldn’t this gap

have increased the incentive for workers to earn college

degrees, thereby increasing the supply of college-educated

workers and reducing the size of the gap?

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