C H A P T E R 1 The Labor Market

A Circular Flow Model of the Economy Figure 1.1 © 2003 South-Western

Trends in Three Dimensions of Labor Supply SOURCES: Annual hours of work were estimated by the authors based on data obtained from the Bureau of Labor Statistics, Employment and Earnings (January 1981, 1991, 2001, 2002); and G. Moore and J. Hedges, “Trends in Labor and Leisure,” Monthly Labor Review 94, no. 2 (February 1971): 5. Labor force participation rates from the Bureau of Labor Statistics, Employment and Earnings (January 2001): Historical A tables. Education data from U.S. Bureau of the Census,<http://www.census.gov/population/ www/socdemo/education.html>. Figure 1.2 © 2003 South-Western

Changes in the Composition of Labor Demand, 1950–2001 SOURCES: Bureau of the Census, Statistical Abstract of the United States (1970), Table 334; Bureau of Labor Statistics, Employment and Earnings (January 2002), Table 9. Table 1.1 © 2003 South-Western

The Structure of Earnings   SOURCES: Bureau of Labor Statistics, Employment and Earnings (January 2002): Table 39; (March 1992 and March 2002): Table B-15. Table 1.2 © 2003 South-Western

Union Wage Effect and Percentage of Workers Unionized, 1930–2000 SOURCES: Barry T. Hirsch and David A. Macpherson, Union Membership and Earnings Databook 2001 (Washington, D.C.,: Bureau of National Affairs, Inc.): Table 1a, 2001; George E. Johnson, “Changes over Time in the Union–Nonunion Wage Differential in the United States,” in Jean-Jacques Rosa, ed., The Economics of Trade Unions: New Directions (Boston: Kluwer Nijhoff, 1984), 5; Barry T. Hirsch and Edward Schumacher, “Private Sector Union Density and the Wage Premium: Past, Present, and Future,” Journal of Labor Research 22 (Summer 2001): Figure 6. Figure 1.3 © 2003 South-Western

Level and Composition of Unemployment, 1972–2001 SOURCE: U.S. Bureau of Labor Statistics, historical data for the “A” tables, <http://www.bls.gov/cps/cpsatabs.htm>. Figure 1.4 © 2003 South-Western

The Determination of Wage Rates by Demand and Supply Figure 1.5 © 2003 South-Western

The Market Adjustment to Shifts in Demand and Supply Figure 1.6 © 2003 South-Western

Demand and Supply in the Market for Teachers SOURCE: National Center for Education Statistics, Digest of Education Statistics, 2000, tables 65, 75, and 284 <http://nces.ed.gov/pubs2001/digest>; U.S. Census Bureau, Historical Income Tables, table P-38 <http://www.census.gov/hhes/income /p38.html>. Figure 1.7 © 2003 South-Western

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