Chapter+9+HW

Chapter 9 Notes Key Terms Labor Force: all nonmilitary people who are employed or unemployed Learning Effect: the theory that education increases productivity and results in higher wages Screening Effect: the theory that the completion of college of college indicates to employers that a job applicant in intelligent and hardworking Contingent Employment: a temporary or part-time job

Tracking the Labor Force Employment - 16 years or older

Unemployment - temporarily without work or not working but have looked for jobs within the last 4 weeks

Occupational Trends Fewer Goods, More Services - production of services is increasing faster than the production of goods - US economy is changing from a manufacturing economy to a service economy

Effects of International Competition - US is losing manufacturing jobs - workers have been laid off due to plant closings or moves

College Graduates - people must have human capital to get jobs (education, training, and experience) - high school diploma alone won't prepare a person for financial success - theory that education increases productivity and results in higher wages is called learning effect - college educated workers earn more than high school drop outs

Women at Work - 1960 38 percent of workers were women - by 2000 60 percent of workers were women - women are encouraged to get higher education and add to their human capital

Temporary Workers - more businesses are replacing permanent, full time workers with part time and temporary workers - temporary or part time jobs are known as contingent employment

Chapter 9.2 Notes Key Terms Derived Demand: demand that is determined by demand for another good or service Productivity: value of output Equilibrium Wage: the wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market Unskilled Labor: labor that requires no specialized skills, education, or training Semi-Skilled Labor: labor that requires specialized skills and training Professional Labor: labor that requires advanced skills and education Glass Ceiling: an unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by white men Labor Union: and organization of workers that tries to improve working conditions, wages, and benefits, for its members Featherbedding: the practice of negotiating labor contracts the keep unnecessary workers on a company's payroll

Supply and Demand for Labor Labor Demand - derived demand - productivity and the value of output

Labor Supply - supply of labor comes form people who provide labor in exchange for wages

Equilibrium Wage - wage rate the produces neither an excess supply of workers nor an excess demand for workers in the labor market

Wages and Skill Levels - unskilled labor - semi-skilled labor - skilled labor - professional labor

Other Factors Affecting Wages - minimum wage laws - safety laws - employers respond to wage laws - unions

Chapter 9.2 Assessment 1. How do the laws of supply and demand affect the labor market? 2. What generally happens to the equilibrium wage when (a) demand for workers is low and supply is high - it lowers because there is too much supply that can't be used for the low demand of workers (b) demand for workers is high and supply is low - it's higher because there isn't enough supply 3. How does skilled labor differ from professional labor? - professional labor need excessive education and training to have the job when as skilled labor a person wouldn't need as much 4. How do minimum wage and safety laws affect wages? - they determine how much a person is allowed to get payed when working at certain places

Chapter 9.3 Notes Key Terms Strike: an organized work stoppage intended to force an employer to address union demands Right-To-Work Law: a measure that bans mandatory union membership Blue-Collar Worker: someone who works in an industrial job, often in manufacturing, and who receives wages White-Collar Worker: someone in a professional or clerical job who usually earns a salary Collective Bargaining: the process in which union and company representatives meet to negotiate a new labor contract Mediation: a settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept Arbitrtion