ER ANN GROWTH RATE 1820-1860 1860 1832 122-143 118-129 150-176 1850 159-202 131-
ID: 1123734 • Letter: E
Question
ER ANN GROWTH RATE 1820-1860 1860 1832 122-143 118-129 150-176 1850 159-202 131-66 l68-209 171-21 129-163 142-180 1820 WEIGHTED 157-188 166-199 1S4-183 1S1-180 140-168 t63-195 139-190 104-197 156-187 12-16 L6-2.1 08-13 07-1.2 14-1.9 L.1-16 09-12 Midde Atlantic Ueban 115 Major urban mall 3-108 128-151 131-14 19-188 133-156 New Egland 1.3-1.8 lural Urban Majkor urban Small 43-181 110 130-153-16- 10-13 17-22 13-18 10-1.5 12-16 154-195 170-30 25-147 127-1 15-9 1e-195 182-218 172-206 110 46-185164-1% Teta 128-10 155-197 The above table provides the real wages for manufacturing workers in the New England and Mid-Atlantic regions between 1820 and 1860. By using real wages, we are able to compare wages across region and time. What changes in manufacturing explain the growth in real wages during this period? Hint: Keep in mind wages are positively correlated with labor productivity. (5pts) AN Looking at the wages in 1820, what do you observe when we compare the wages in the Middle Atlantic and New England? Provide specific examples from the chart. (Spts) ANExplanation / Answer
1) From the above data there is an average growth rate of 1.2 - 1.5 in wages from 1820-1860 in all the countries this is a sign to that there is large development in manufacturing industry in mids 19 century and early 19 century from 1820-1860. More the demand for manufacturing of goods the more will the demand for labour due to high requirement of labour which leads to demand for labour and increase in their wages.
2) From the wages data in 1820 the wages in Middle Atlantic and Newzland were almost equal but in Newzland it is more by 1% in wage rate when coimpared to Middle Atlantic. But if we compare the exchange rate the Newzland money is more value than Middle Atlantic region.
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