What is the capital-skill complementarity hypothesis show, Microeconomics

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What is the capital-skill complementarity hypothesis show

Problem

1. What is the capital-skill complementarity hypothesis?

2. Show how the minimum wage creates unemployment in a competitive market.

3. Discuss the impact of the minimum wage when there are two sectors in the economy, the covered sector (which is subject to the minimum wage) and the uncovered sector (which is not).

4. Summarize the evidence regarding the impact of the minimum wage on employment.

5. How does the firm adjust its employment if it is costly to hire and fire workers?

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Microeconomics: What is the capital-skill complementarity hypothesis show

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