Answer :
Final answer:
The economic dynamics of employment in sectors like information technology and apparel is guided by factors such as education level of workers and capital. While information technology increases demand for high-wage labor and decreases demand for low-wage labor leading to greater inequality, human capital investment is critical for growth in labor productivity and GDP per capita. These factors significantly impact the earnings of high-educated workers and capital owners in economies like Japan.
Explanation:
The three factors of production outlined in your question are low-educated workers, high-educated workers, and capital. It's important to understand their roles and the economic dynamics that guide their employment in sectors such as information technology and apparel.
To illustrate, economist Sir W. Arthur Lewis proposed the dual sector economy where the marginal product of low-skilled workers is higher in the manufacturing sector than in agriculture. This is because agricultural societies tend to be mature with fixed inputs, leaving additional farmers (or low-educated workers) with nearly zero marginal product, or, as Lewis referred to them, surplus workers. In contrast, the demand for these workers in early-stage manufacturing sectors like apparel is high.
Moreover, information technology has been observed to decrease demand for low-wage labor but increase demand for high-wage labor. This leads to lower wages for low-wage laborers and higher wages for high-wage laborers, thereby creating greater income inequality.
Factors such as education and investment in human capital are equally important for growth in labor productivity and GDP per capita. These dynamics are crucial in understanding the effects of migration on the earnings of high-educated workers and capital owners, especially in technologically advanced economies like Japan.
Learn more about Factors of Production here:
https://brainly.com/question/988852
#SPJ11
