Labor, Wages, Unemployment

Wages The payment for your work. Can be hourly, weekly, bi-weekly, monthly, yearly or contract (for the job)

Wage Factors Wages depend on: supply and demand of workers; how attractive or Appealing a job is; what society values; location; your skills and talents

Kobe vs. Kohn

Kobe 34 years old Went to HS 16 years experience ‘12-’13 $30,453, 805

Kohn 53 years old MS Baylor 32 years experience $68, ’12- ‘13

Kobe vs. Kohn 54 years old MS Baylor 32 years experience $68, ’12-’13 35 years old High School 16 years experience $30,453, 805+ endorse- ments (about 53 million)

Choose a job you love, and you will never have to work a day in your life. Confucius

Differences Even though Congress outlawed wage discrimination based on gender or race in the 1960’s, equality still has not been achieved in all fields of employment.

Gender Today women earn about $0.77 for every $1.00 that men earn. Women in the past have not been as educated as men. Also, women often drop out of the workforce to raise their children.

Ethnicity. In the past, minorities have earned less than whites. The glass ceiling is an unofficial and invisible barrier in some workplaces which prevents some women and minorities from advancing in certain companies.

Minimum Wage Minimum wage increased on July 24, 2008 from $5.85 to $6.55. It is scheduled to increase again on July 24, 2009 to $7.25. Increasing minimum increases the costs for the company. To offset these additional costs, companies generally do one of two things: either they lay off workers, or increase the price for their product.

Unemployment Frictional unemployment – people take time to find a job Seasonal unemployment – industries slow down or shut down for a season

Structural unemployment – workers’ skills don’t match jobs that are available Cyclical unemployment – rises during economic downturn and falls when economy improves