Chapter 5 Quasi-Fixed Labor Costs and Their Effects on Demand.

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Presentation transcript:

Chapter 5 Quasi-Fixed Labor Costs and Their Effects on Demand

Copyright © 2003 by Pearson Education, Inc.5-2

Copyright © 2003 by Pearson Education, Inc.5-3

Copyright © 2003 by Pearson Education, Inc.5-4 Figure 5.1 The Predicted Relationship between ME M /ME H and Overtime Hours

Copyright © 2003 by Pearson Education, Inc.5-5 Figure 5.2 Effects of Training on Marginal Product Schedules

Copyright © 2003 by Pearson Education, Inc.5-6 Figure 5.3 Multiperiod Demand for Labor

Copyright © 2003 by Pearson Education, Inc.5-7

Copyright © 2003 by Pearson Education, Inc.5-8 Figure 5.4 A Two-Period Wage Stream Associated with Specific Training

Copyright © 2003 by Pearson Education, Inc.5-9 Figure 5.5 Productivity and Wage Growth, First Two Years on Job, by Occupation and Initial Hours of Employer Training Source: John Bishop, “The Incidence of and Payoff to Employer Training,” Cornell University Center for Advanced Human Resource Studies Working Paper 94-17, July 1994, Table 1.

Copyright © 2003 by Pearson Education, Inc.5-10 Figure 5.6 The Effect of a Decline in Demand on Employment with General and Specific Training