2) What might happen in the long run if firms continued to face higher wages and a shortage of labor?

Question

2) What might happen in the long run if firms continued to face higher wages and a shortage of labor?

Answer 1

The strong and richer companies survive. Its a natural business cycle. Shortage of Labor will only make salaries rise. Some companies will not be able to pay the salaries and end up with less experienced people. Sorta like the fight between small regional and large international airlines for talent.

Answer 2

You sound Irish, he he. we have this problem in Ireland, higher wages means less competitive nation for foreign companies, but it depends, Ireland has a very low corporate tax of 12.5% so even if the wages are very high in here, 12.5% of income tax for a company is not much comparing to taxes in Other European countries that can be from 30% to 50%.

Shortage of labour, answer, imigrants, like Polish, French, Italians, and non EU.

Answer 3

ever seen that new will smith movie? the legend...? That's what will happen.