Considering the labor market for police officers, what happens if there's an increase in the wages of firemen?

Question

Considering the labor market for police officers, what happens if there's an increase in the wages of firemen?

Answer 1

The relative increase of wages of firemen, all else being equal (i.e., assuming there is not also an influx of new workers from another town), will result in demand for jobs shifting from police to firemen in the short run.  In a longer view, the labor supply curve for policemen will also shift to the left and eventually there will be a corresponding (but not necessarily equal) increase in police wages.