Lesson Plan

• Describe what wage differentials are and why they exist.
• Explain how at least three government policy instruments affect gross and net wages.
• Analyse the equity benefits and efficiency costs of each policy.
• Evaluate the overall desirability of government intervention using a balanced argument.
• Apply knowledge to a typical exam question, constructing a concise answer with a supporting diagram.

• Projector and screen
• Whiteboard and markers
• Handout summarising policy instruments and effects
• Worksheet with mini‑case study and calculations
• Graph paper or digital graphing tool for labour‑market diagrams
• Exit‑ticket slips

Begin with a quick poll: “Why do you think some workers earn more than others?” Capture a few responses, link them to prior knowledge of skills and location, and state that today they will explore how government policy can reshape these differences. Explain that by the end of the lesson they will be able to describe, analyse, and evaluate such policies.

1. Do‑now (5’) – Students list reasons for wage differences; share with class.
2. Mini‑lecture (10’) – Define wage differentials and outline why governments intervene.
3. Group analysis of policy table (15’) – Each group examines one instrument, notes its effect on gross/net wages and possible unintended consequences; brief whole‑class debrief.
4. Diagram activity (10’) – Students sketch the minimum‑wage impact on a supply‑demand graph and calculate the resulting surplus.
5. Equity vs. efficiency debate (10’) – Groups argue the pros and cons of a chosen policy; teacher synthesises key points.
6. Practice exam question (10’) – Write a concise answer to the sample IGCSE question; peer‑review using a checklist.
7. Exit ticket (5’) – Write one key takeaway and one lingering question.

Recap the main ways government policy can shift wage differentials and the trade‑offs involved. Collect exit tickets to gauge understanding and assign a short homework: research a recent wage‑related policy in their own country and write a brief paragraph evaluating its equity and efficiency impacts.