LaborChapter 9

Tracking the Labor Force◦ All nonmilitary people who are employed or

unemployed◦ Employed if;

16 or older Worked at least one hr in the past week Worked 15 or more hrs w/o pay in family business Held a job, but didn’t work due to illness, disputes, or

weather

Labor Market and Trends

Unemployed if ◦ Temporarily out of work or not working, BUT have

looked for jobs within the last four weeks Not workers

◦ Discouraged workers◦ Full-time students◦ Stay at home parents◦ retirees

Labor Market and Trends

Occupational Trends◦ Changing Economy

Farming to Industry/Manufacturing to Service/Information

◦ Fewer Goods, More Services◦ Effects of International Competition

Outsourcing Offshoring

Labor Market and Trends

The Changing Labor Force◦ College Graduates (learning effect, screening

effect)◦ Women at work

Women in Labor Force 1960 38%; 2010 62%◦ Temporary Workers

Contingent employment◦ Foreign-born Workers

15% of all workers Guest workers

Labor Market and Trends

Wages and Benefits Trends◦ Real Wages Down

$241 in 1980 -> $222 today◦ Cost of Benefits

Adds $7.87 per hour to wage on average 30% of total worker compensation Problem with rising costs

Labor Market and Trends

Supply and Demand for Labor◦ Labor Demand

Derived demand Productivity of labor

◦ Labor Supply◦ Equilibrium Wage

Labor and Wages

Wages and Skill Levels◦ Unskilled labor (dishwashers, messengers)◦ Semi-skilled labor (hourly wage, lifeguards, many

factory and construction workers)◦ Skilled labor (auto mechanics, bank tellers, chefs,

carpenters)◦ Professional Labor (salary, managers, teachers,

bankers, doctors, pro athlete)

Labor and Wages

Wage Discrimination◦ Laws against wage discrimination

Equal Pay Act of 1963; EEOC◦ Pay Levels for Women

“Women’s Work” Human Capital Women’s Career Paths

Labor and Wages

Other Factors Affecting Wages◦ Minimum Wage Laws◦ Safety Laws◦ Employer Response to Wage Levels◦ Unions

Organization of workers that tries to improve working conditions, wages, and benefits for its members

Labor and Wages

Labor and Labor Unions◦ Collective Bargaining (simulation)

Negotiate a new contract◦ Strikes

Stoppage of work◦ Outside help to reach a settlement

Mediation – neutral person tries to suggest a solution that both sides will accept

Arbitration – neutral third party listens to both sides and then imposes a decision that is legally binding

Organized Labor