Chapter Labor Markets 10
Who is in the Labor Force? <ul><li>Labor force  = total number of people willing and able to work (16 or older) </li></ul>
Types of Work <ul><li>Sector =part of the economy; type of work </li></ul><ul><li>3 main sectors: </li></ul><ul><ul><li>Fa...
Which Sector do they Work In? 1 2 3 4
Skill Levels <ul><li>Unskilled </li></ul><ul><ul><li>No special training </li></ul></ul><ul><ul><li>Quickly learned skills...
Skill Levels <ul><li>Types of labor do not directly compete with one another </li></ul><ul><li>Each type of labor is essen...
Categorize the Following Jobs: <ul><li>Carpenter </li></ul><ul><li>Secretary </li></ul><ul><li>Accountant </li></ul><ul><l...
The Demand for Labor <ul><li>Value of labor is  derived  from the value attached to the product or service a worker helps ...
The Supply of Labor <ul><li>What affects the supply of labor? </li></ul><ul><ul><li>Population </li></ul></ul><ul><ul><li>...
Wages <ul><li>Why can a rise in wages have a negative effect on supply? </li></ul><ul><ul><li>Substitution Effect </li></u...
Wages: Supply & Demand Remember:  Wages are a Price! How are wages determined?
Collective Bargaining: <ul><li>Tools: </li></ul><ul><li>Labor Unions </li></ul><ul><li>Negotiation </li></ul><ul><li>Labor...
Preferences & Discrimination: <ul><li>Why are employers willing to pay more for an employee with a college degree than one...
Preferences & Discrimination: <ul><li>Preference based on  race ,  religion ,  national origin , or  gender </li></ul>= Di...
Education & Earnings
Define the Following Terms: <ul><ul><ul><ul><li>Civilian Labor Force </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Substitu...
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Econ Ch10 Labor Markets

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Econ Ch10 Labor Markets

  1. 1. Chapter Labor Markets 10
  2. 2. Who is in the Labor Force? <ul><li>Labor force = total number of people willing and able to work (16 or older) </li></ul>
  3. 3. Types of Work <ul><li>Sector =part of the economy; type of work </li></ul><ul><li>3 main sectors: </li></ul><ul><ul><li>Farming </li></ul></ul><ul><ul><ul><li>Many left to join manufacturing/construction in early 1900s </li></ul></ul></ul><ul><ul><li>Manufacturing/Construction </li></ul></ul><ul><ul><ul><li>Largest sector by 1920 </li></ul></ul></ul><ul><ul><li>Service Industries </li></ul></ul><ul><ul><ul><li>Once the smallest, now the largest </li></ul></ul></ul><ul><ul><ul><li>Ex: Computers Technicians, Hairdressers, Scientists, Teachers, Cooks, Bankers </li></ul></ul></ul>
  4. 4. Which Sector do they Work In? 1 2 3 4
  5. 5. Skill Levels <ul><li>Unskilled </li></ul><ul><ul><li>No special training </li></ul></ul><ul><ul><li>Quickly learned skills </li></ul></ul><ul><ul><li>Easy to hire and replace </li></ul></ul><ul><li>Semiskilled </li></ul><ul><ul><li>More training </li></ul></ul><ul><ul><li>Narrow range of skills, short amount of time </li></ul></ul><ul><li>Skilled </li></ul><ul><ul><li>Extensive training and experience </li></ul></ul><ul><ul><li>Specialized knowledge </li></ul></ul><ul><li>Professionals </li></ul><ul><ul><li>College degree + specialized training </li></ul></ul><ul><ul><li>White-collar professions </li></ul></ul><ul><ul><li>Difficult to replace </li></ul></ul><ul><ul><li>Ongoing education </li></ul></ul><ul><li>Unskilled </li></ul><ul><ul><li>Store Clerk </li></ul></ul><ul><ul><li>Ditch Digger </li></ul></ul><ul><ul><li>Receptionist </li></ul></ul><ul><li>Semiskilled </li></ul><ul><ul><li>Telephone operator </li></ul></ul><ul><ul><li>Small Store Manager </li></ul></ul><ul><ul><li>Nurse’s aides </li></ul></ul><ul><li>Skilled </li></ul><ul><ul><li>Plumber </li></ul></ul><ul><ul><li>Electrician </li></ul></ul><ul><ul><li>Police Officer </li></ul></ul><ul><ul><li>Dental Assistant </li></ul></ul><ul><li>Professionals </li></ul><ul><ul><li>Lawyer </li></ul></ul><ul><ul><li>Teacher </li></ul></ul><ul><ul><li>Engineer </li></ul></ul><ul><ul><li>Dentist </li></ul></ul><ul><ul><li>Doctor </li></ul></ul>
  6. 6. Skill Levels <ul><li>Types of labor do not directly compete with one another </li></ul><ul><li>Each type of labor is essential to the economy </li></ul><ul><li>Education allows people to progress from one skill level to another </li></ul>
  7. 7. Categorize the Following Jobs: <ul><li>Carpenter </li></ul><ul><li>Secretary </li></ul><ul><li>Accountant </li></ul><ul><li>Professional Quarterback </li></ul><ul><li>Waiter </li></ul><ul><li>Toll Collector </li></ul><ul><li>Scientist </li></ul><ul><li>Professor </li></ul>Manufacturing/construction; semiskilled Service; semiskilled Service; skilled Service; skilled Service; unskilled Service; unskilled Service; professional Service; professional
  8. 8. The Demand for Labor <ul><li>Value of labor is derived from the value attached to the product or service a worker helps produce </li></ul><ul><li>Derived demand = demand for one thing arises from a demand for something else </li></ul><ul><li>Wages = price paid for labor </li></ul>
  9. 9. The Supply of Labor <ul><li>What affects the supply of labor? </li></ul><ul><ul><li>Population </li></ul></ul><ul><ul><li>Wages </li></ul></ul><ul><ul><li>Elasticity/Inelasticity </li></ul></ul><ul><ul><ul><li>Location </li></ul></ul></ul><ul><ul><ul><li>Skill Level Required </li></ul></ul></ul>
  10. 10. Wages <ul><li>Why can a rise in wages have a negative effect on supply? </li></ul><ul><ul><li>Substitution Effect </li></ul></ul><ul><ul><li>Income Effect </li></ul></ul>
  11. 11. Wages: Supply & Demand Remember: Wages are a Price! How are wages determined?
  12. 12. Collective Bargaining: <ul><li>Tools: </li></ul><ul><li>Labor Unions </li></ul><ul><li>Negotiation </li></ul><ul><li>Labor Contract </li></ul><ul><li>Strike </li></ul><ul><li>Lockout </li></ul>
  13. 13. Preferences & Discrimination: <ul><li>Why are employers willing to pay more for an employee with a college degree than one with a high school degree if both employees will do the same work? </li></ul><ul><li>How businesspeople view college degrees: </li></ul><ul><ul><li>Sign of intelligence </li></ul></ul><ul><ul><li>Hard work </li></ul></ul><ul><ul><li>Willingness to complete a long term goal </li></ul></ul><ul><li>These are qualities valued in an employee. </li></ul>
  14. 14. Preferences & Discrimination: <ul><li>Preference based on race , religion , national origin , or gender </li></ul>= Discrimination (EE0) Equal Employment Opportunity: Treating an employee differently based on anything other than job performance or character is illegal
  15. 15. Education & Earnings
  16. 16. Define the Following Terms: <ul><ul><ul><ul><li>Civilian Labor Force </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Substitution effect </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Income effect </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Equilibrium wage rate </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Labor union </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Collective bargaining </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Strike </li></ul></ul></ul></ul>

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