Copyright © 2009 Pearson Education, Inc. Chapter 2 Overview of the Labor Market.

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Copyright © 2009 Pearson Education, Inc. Chapter 2 Overview of the Labor Market

Copyright © 2009 Pearson Education, Inc Figure 2.5: The Markets in which Firms Must Operate

Copyright © 2009 Pearson Education, Inc Labor Market Internal Labor Market Labor Force Out-of-Labor Force Labor Force Participation Rate Unemployment Rate Primary, Secondary, and Tertiary Sectors Pareto Efficiency Important Definitions - Labor Markets

Copyright © 2009 Pearson Education, Inc Figure 2.1: Labor Force Status of the U.S. Adult Civilian Population, April 2007

Copyright © 2009 Pearson Education, Inc Table 2.1: Labor Force Participation Rates by Gender,

Copyright © 2009 Pearson Education, Inc Figure 2.2: Unemployment Rates for the Civilian Labor Force, (detailed data in table on next slide)

Copyright © 2009 Pearson Education, Inc Unemployment Rates for the Civilian Labor Force, (Data displayed Graphically in Figure 2.2)

Copyright © 2009 Pearson Education, Inc Figure 2.3: Employment Distribution by Major Nonfarm Sector, (detailed data in table on next slide)

Copyright © 2009 Pearson Education, Inc Employment Distribution by Major Nonfarm Sector, (data displayed graphically in Figure 2.3)

Copyright © 2009 Pearson Education, Inc Nominal Wages Real Wages Consumer Price Index Earnings Payments In Kind Deferred Payments Total Compensation Income Important Definitions - Earnings of Labor

Copyright © 2009 Pearson Education, Inc Table 2.2: Nominal and Real Hourly Earnings, U.S. Nonsupervisory Workers in the Private Sector,

Copyright © 2009 Pearson Education, Inc Figure 2.4: Relationship between Wages, Earnings, Compensation and Income

Copyright © 2009 Pearson Education, Inc Substitution Effect Scale Effect Change In Demand Change in Quantity Demanded Market, Industry, and Firm Labor Demand Long Run vs. Short Run Labor Demand Important Definitions - The Demand for Labor

Copyright © 2009 Pearson Education, Inc Table 2.3: Labor Demand Schedule for a Hypothetical Industry

Copyright © 2009 Pearson Education, Inc Figure 2.6: Labor Demand Curve (based on Table 2.3)

Copyright © 2009 Pearson Education, Inc Figure 2.7: Shift in Demand for Labor Due to Increase in Product Demand

Copyright © 2009 Pearson Education, Inc Figure 2.8: Possible Shifts in Demand for Labor Due to Fall in Capital Prices

Copyright © 2009 Pearson Education, Inc Change in Quantity Supplied Change in Supply Comparable vs. Noncomparable Jobs Market Supply of Labor Supply of Labor to the Firm Wage Taker Important Definitions - The Supply of Labor

Copyright © 2009 Pearson Education, Inc Figure 2.9: Market Supply Curve for Paralegals

Copyright © 2009 Pearson Education, Inc Figure 2.10: Shift in Market Supply Curve for Paralegals as Salaries of Insurance Agents Rise

Copyright © 2009 Pearson Education, Inc Figure 2.11: Supply of Paralegals to a Firm at Alternative Market Wages

Copyright © 2009 Pearson Education, Inc Equilibrium or Market Clearing Wage Disequilibrium Excess Demand and Excess Supply Nonmarket Influences on the Labor Market Collective Bargaining Agreement Economic Rent Reservation Wage Important Definitions - Wage Determination

Copyright © 2009 Pearson Education, Inc Figure 2.12: Market Demand and Supply

Copyright © 2009 Pearson Education, Inc Figure 2.13: Demand and Supply at the “Market” and “Firm” Levels

Copyright © 2009 Pearson Education, Inc Figure 2.14: New Labor Market Equilibrium after Demand Shifts Right

Copyright © 2009 Pearson Education, Inc Figure 2.15: New Labor Market Equilibrium after Supply Shifts Left

Copyright © 2009 Pearson Education, Inc Figure 2.16: New Labor Market Equilibrium after Supply Shifts Right

Copyright © 2009 Pearson Education, Inc Figure 2.17: Effects of an Above-Market Wage

Copyright © 2009 Pearson Education, Inc Figure 2.18: Effects of a Below-Equilibrium Wage

Copyright © 2009 Pearson Education, Inc Figure 2.19: Labor Supply to the Military: Different Preferences Imply Different “Rents”

Copyright © 2009 Pearson Education, Inc Table 2.4: Unemployment and Long-Term Unemployment, Selected European and North American Countries, 2005