This document discusses labor markets and the factors that impact supply and demand for labor. It defines a labor market as a market where people offer their skills in exchange for compensation like wages. The labor market reaches equilibrium when the supply of labor equals the demand. Technological advances are changing the types of jobs available, increasing demand for skills that complement new technologies while putting low-skilled jobs at risk. Investing in education, training, factories and machinery can raise future living standards by increasing productivity and wages. Firms provide both general and specific job training to workers.

1. Supply
Demand
Innovation
Investment
Daniela Perciun – Giulia
Cavicchioli
2015/2016
Classe 4^AM

2. A LABOUR MARKET IS A MARKET WHERE PEOPLE OFFER THEIR SKILLS
TO EMPLOYERS IN EXCHANGE FOR WAGES, SALARIES AND OTHER
FORMS OF COMPENSATION.
LABOUR
FORCE
NON-
LABOUR
FORCE
 PEOPLE IN PRISONS OR
PSYCHIATRIC WARDS
 STAY-AT HOME
SPOUSES
 CHILDREN
 PEOPLE SERVING IN
THE MILITARY

3. Commodit
y Market
Labour
Market
REFERS TO A PHYSICAL
PLACE
IS VIEWED AS A PROCESS

4. MPR
THE DEMAND
FOR THE
GOODS THE
WORKER IS
PRODUCING
WAGE
RATE

6. THE LABOUR MARKET WILL REACH
EQUILIBRIUM WHEN THE SUPPLY OF
LABOUR EQUALS THE DEMAND FOR
LABOUR.
THIS POINT OF EQUILIBRIUM IS CALLED
“MARKET CLEARING”.

7. IN THE PAST, AUTOMATION WAS
LARGELY CONFINED TO MIDDLE-
INCOME
ROUTINE MANUFACTURING AND
CLERKING OCCUPATIONS, BUT THINGS
ARE
CHANGING.

8. CHALLENGES FOR LOW-SKILLED WORKERS
.
SKILL OBSOLESCENCE AND THE
LACK OF SKILL DEVELOPMENT.
THE DEVELOPMENT OF SKILLS
COMPLEMENTARY TO NEW
TECHNOLOGIES.
EDUCATIONAL EFFORTS SHOULD AIM TO
PROVIDE WORKERS WITH BOTH
TECHNICAL, CREATIVE AND SOCIAL
SKILLS.

9. JOBS THAT ARE NOT AT RISK OF COMPUTERISATION:
MANAGEMENT,
EDUCATION,
HEALTHCARE
SCIENCE OR
ENGINEERING JOBS

10. INVESTMENT IN FACTORIES, MACHINERY, NEW TECHNOLOGY, AND IN
HEALTH, EDUCATION, AND TRAINING OF PEOPLE CAN RAISE FUTURE
STANDARDS OF LIVING.

11. EDUCATION INCREASES SKILLS AND THESE IN TURN
INCREASE PRODUCTIVITY. HIGHER PRODUCTIVITY IS THEN
REWARDED THROUGH HIGHER EARNINGS.
MADE BY PEOPLE THEMSELVES MADE BY EMPLOYERS IN
THEIR EMPLOYEES
INVESTMENTS CAN BE

12. INVESTMENTS:
THE SOONER
THE BETTER
PROBLEMS
• A STUDENT CANNOT USE
HIMSELF AS GUARANTY FOR A
HUMAN CAPITAL LOAN.
• THE ABSENCE OF STUDENT
LOAN PROGRAMS.

13. WHAT ARE THE BENEFITS
OF A UNIVERSITY
DEGREE?
WHAT IS THE COST OF A
UNIVERSITY DEGREE?
 WORKERS WILL BE
COMPENSATED BY
HIGHER WAGES
 DIRECT COSTS
 COSTS FOR FOOD
AND RENT
 OPPORTUNITY COST

14. GARY BECKER DISTINGUISHED BETWEEN:
 FIRM-SPECIFIC JOB
TRAINING
 GENERAL JOB TRAINING

15. SITOGRAPHY
• http://www.oxfordmartin.ox.ac.uk/downloads/academic/technology-
globalisation-future-of-work_Mar2015.pdf
• http://www.fte.org/teacher-resources/lesson-plans/efllessons/lesson-5-labor-
markets/
• http://siteresources.worldbank.org/EDUCATION/Resources/278200-
1099079877269/547664-1208379365576/DID_Labor_market_outcomes.pdf
• https://www.youtube.com/watch?v=H894hRwJ1PE
• http://highered.mheducation.com/sites/0070891540/student_view0/chapter9/
chapter_notes.html

16. THANK YOU FOR YOUR
ATTENTION!
Daniela Perciun
Giulia Cavicchioli
4^ AM 2015-2016