A state agency has recently removed the certification and training requirements for hairdressers in the state. What is likely to happen in the labor market for hairdressers?(1 point)

Responses

The demand for hairdressers will rise.
The demand for hairdressers will rise.

The wages paid to hairdressers will rise.
The wages paid to hairdressers will rise.

The demand for hairdressers will fall.
The demand for hairdressers will fall.

The wages paid to hairdressers will fall.

1 answer

When a state agency removes certification and training requirements for hairdressers, it generally leads to an increase in the supply of hairdressers, as more individuals can enter the profession without needing formal training or certification.

As a result, the most likely outcomes in the labor market for hairdressers would be:

  1. The demand for hairdressers will rise - This response is less likely, as the demand for services typically does not increase simply due to a change in certification for providers.

  2. The wages paid to hairdressers will rise - This is also less likely, as increasing supply usually puts downward pressure on wages.

  3. The demand for hairdressers will fall - This is unlikely too, as demand for hairdressers usually remains stable unless affected by other factors, such as market saturation.

  4. The wages paid to hairdressers will fall - This is the most likely outcome. With increased supply and no significant change in demand, competition among hairdressers may increase, leading to a reduction in wages.

Thus, the most likely event is the wages paid to hairdressers will fall.