Assignment Scenario: Your company has been asked to provide advice to the Australian Government on a number of proposals it has received from the (fictional) Australian Civil Engineers Union (ACEU)*. The ACEU is concerned that the number of civil engineers is declining in Australia.
This is partly due to the fact that other types of engineers (such as mechanical and electrical) are earning higher wages despite undergoing similar training at university. To address the decline, the union is lobbying the government to adopt a number of policies, specifically: i) provide a tax rebate to individuals working in a civil engineering job; ii) invest in the quality of civil engineering training so that Australian civil engineers are the best in the world; and iii) lower the cost of the civil engineering major at universities.
Task: Brief report that critically analyses the labour market outcomes from the three policies suggested by the ACEU. Your report should discuss the impact on the supply and demand for engineers in Australia, both civil engineers and other types of engineers. Use appropriate diagrams to support your discussion, and comment on the impact on wages and productivity in the different labour markets. You should also discuss any economic costs that might arise from the policies (like deadweight losses)