If government made college education free and mandatory, the supply of college-e

Question

If government made college education free and mandatory, the supply of college-educated workers would obviously skyrocket. What would happen to the supply of skilled tradesmen? If all else remained equal -- in other words the demand for college educated works remained the same and the demand for skilled tradesmen remained the same -- where would there be shortages? Where would there be a surplus? How might this affect pay for each of these groups?   Take a look at the discussion of market surplus and market shortage on page 60-61 in your textbook.

Explanation / Answer

When the government made the college education mandatory and free there would be large number of people studying in the college and get graduated from that college.

So there would be more number of people applying for same work.Then huge otflow of educated workers will create great competetion among themselves and among the skilled trades man as the oppurtinities are limited.

But every Firm wants to hire the skilled tradesman and we are assuming that demand for both of them remained the same so we say that every educated workers couldn't get a work.
There is a huge surplus of Educated workers in the market due to overflow of these workers graduating freely in government colleges.

Similarly the jobs are limited and those can't be increased as the workers increased so in the view of Educated workers the Jobs look shortage in the market .

Regarding to the payment issue the skilled tradesman will get the same as he gets before.

But in the case of the educated workers the payment decreased as the number of people remained unemoloyed who had the same capability so the Firm try to offer the lowest price to the employee.If the worker rejects the Firm can recruit another one who works for that price at the same price who is equally capable to the other one.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.