Economics Organized Labor Union Collective Bargaining Strike Mediation Arbitration

Economics In the early years of the Industrial Revolution, workers were frequently exploited.

Economics Union Workers realized that united workers had more power than a worker alone. Therefore, workers formed unions. A union is an organization of workers which tries to improve wages, working conditions, and benefits for their members. Bosses tried to break unions but unions survived.

Economics Union Tactics A strike is an organized work stoppage. Sometimes union members go on strike to improve their working conditions or wages. When union and company representatives meet to negotiate a new contract, collective bargaining occurs. Unions use many tactics to improve the lives of their members.

Economics When union and company representatives meet to negotiate a new contract, collective bargaining occurs.

Economics Mediation and Arbitration Sometimes union and company representatives cannot agree on the terms of a new contract. To ensure a new contract, mediation or arbitration can occur. In mediation, a neutral party tries to find a mutually beneficial solution. The solution can be rejected. In arbitration, a neutral party imposes a solution. It must be accepted. It is legally binding.

Economics Employment and Unions Eventually, unions gained power. Though it is illegal today, unions forced employers to use closed shops. A closed shop is a business that only hires union members. A union shop is a business that will hire nonunion members but requires them to join the union once they are hired.

Economics As unions became more powerful, employers were pressured to only hire union members. Today, however, the closed shop is illegal.

Economics The Agency Shop An agency shop is a business that does not require workers to join the union but does require all workers to pay union dues. Even nonunion members must pay union dues to prevent the problem of the free rider. A free rider is a person who would not pay for a particular service but would nonetheless benefit from the service.

Economics While union membership has fluctuated over the years, unions are still important.

Economics Questions for Reflection: What is a union and how do unions benefit their members? List two significant union tactics. Define each tactic. What is the difference between mediation and arbitration? How do closed shops, union shops, and agency shops differ?

Economics Labor and Wages Labor Force Four Kinds of Workers Glass Ceiling Affirmative Action

Economics The labor force is defined as all nonmilitary workers over 16 who are employed or unemployed (but looking for work).

Economics Four Kinds of Workers Unskilled workers possess no specialized skills or training. Semi-skilled workers have minimal skills. Skilled workers have specialized skills and training. Professional workers have advanced education.

Economics A restaurant server is an unskilled worker.

Economics A lifeguard is a semi-skilled worker.

Economics An electrician is a skilled worker.

Economics A doctor is a professional worker.

Economics The more educated a worker is, the higher the worker’s wage.

Economics The Glass Ceiling Sometimes gender discrimination prevents female employees from advancing. Economists speak of a glass ceiling. A glass ceiling is an invisible barrier that prevents women from advancing in the workplace. Gender discrimination prevents women from advancing in the workplace. A glass ceiling exists.

Economics Affirmative Action Affirmative action promotes the hiring of women and minorities. Affirmative action policies recognize that women and minorities have historically been denied access to certain jobs. Affirmative action policies seek to remedy past injustices and promote diversity in the workplace. Affirmative action policies are frequently debated.

Economics Questions for Reflection: Who is considered part of the labor force? How does education affect wages? What is the difference between unskilled workers, semi-skilled workers, skilled workers, and professional workers? How does the glass ceiling affect women? Why do affirmative action policies exist?

Economics Labor Market Trends Historical Changes Affecting the Labor Market Women and the Labor Market Contingent Employment The Learning Effect The Screening Effect

Economics From Farms to Factories At the time of the American Revolution, most Americans were farmers. However, in the North, agriculture yielded to the Industrial Revolution in the early 1800s. Eventually, manufacturing jobs replaced many agricultural jobs.

Economics With the coming of the Industrial Revolution, many Americans became factory workers.

Economics From Radio to Computers By the mid-twentieth century, the United States experienced a boom in electronics, radio, and television. Many Americans found work in this new arena. However, by the 1970s, the personal computer revolution began. The labor market is continually changing.

Economics Computers revolutionized work and the workplace. The production of services has increased while manufacturing has decreased.

Economics Women and Work Women have greatly increased their participation in the workforce. There are many reasons for the increased participation of women in the workforce. Increased education, higher divorce rates, and the need for two salaries has led many women into the workforce.

Economics Contingent Employment There has also been a rise in contingent employment. Contingent employment is a temporary job. A worker is hired for a specific project or a specific period of time. Employers typically do not provide fringe benefits.

Economics Theories Concerning Education There are two theories as to why educated workers make more money. The Learning effect states that education increases productivity. The Screening effect states that completing college indicates intelligence.

Economics Questions for Reflection: How has the labor market changed over the course of time? Why do more women work? What is an advantage and a disadvantage of contingent employment? How does the learning effect differ from the screening affect? Why has manufacturing decreased and the production of services increased?