Interference in the labour market. Minimum Wage  A minimum amount per hour which most workers are entitled to be paid.  U.S. minimum wage is 15,000.

Slides:

Advertisements

Similar presentations

Labour Market Constraints LMCs result in disequilibrium in the labour market LMCs result in disequilibrium in the labour market They prevent the labour.

Advertisements

AD and AS Tragakes 2012, chapter 9. Aggregate Demand Aggregate Demand (AD): The total quantity of aggregate output, or real GDP, that all buyers in an.

Objectives © Pearson Education, 2005 Markets in Action Chapter 6.

What do you think?: Should we increase minimum wage? CIE3M Price Controls.

Price Floors and Ceilings

The UK Economy Economy and Welfare Systems.

© The McGraw-Hill Companies, 2008 Chapter 16 Government spending and revenue David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 9th Edition,

Wrapping UP Insurance Let’s Review Moral Hazard With health insurance, the amount of expenditures may depend on whether you have insurance. Suppose that.

THE NATURAL UNEMPLOYMENT RATE Recall: 1) when the economy is at full employment, there is still some amount of unemployment. (recall the definition of.

Chapter 6 Market Efficiency and Government Intervention.

15 Unemployment and Its Natural Rate. IDENTIFYING UNEMPLOYMENT Categories of Unemployment The problem of unemployment is usually divided into two categories.

Maximum and Minimum Prices

Trade unions GCSE Business studies. Lesson objectives £ Can I explain the term ‘trade union’ and give details? ££ Am I able to list the role of trade.

SECTION 2 WORK Starter… What are the main reasons used to explain differences in pay between one job or person, and another? 1.Different training and skills.

National Minimum Wage A2 Economics.

SECTION 2 WORK Starter… What percentage of gross pay has been deducted from W. A. McGonagle’s wages?

The Labor Market and Potential GDP The Supply of Labor –The quantity of labor supplied is the number of labor hours that all the households in the economy.

Chapter 9 Labor Economics. Copyright © 2005 Pearson Addison-Wesley. All rights reserved.9-2 Learning Objectives Determine why the demand curve for labor.

1 Chapter 11 Practice Quiz Tutorial Labor Markets ©2000 South-Western College Publishing.

Economics Winter 14 January 29 th, 2014 Lecture 9 Ch. 5 : pp ; Ch. 6 (up to p. 138)

Supply and Demand at Work 21.3 & What is Supply and Demand The amount of goods a producer is willing to sell at market prices. Opposite of demand.

(Labour) Markets Central Theory 1.  Demand  Diminishing marginal value  Price is given  Maximization  Equilibrium for a buyer  Labour demand  Diminishing.

Labor and the Factor Market. Factor Market The factor market includes Land, Labor, and Capital. – Land: The space needed to do work, as well as the natural.

Economic Resources And Systems

Stakeholder Objectives

The National Minimum Wage Arguments for and against.

Government Influences on Markets & Taxes  As Governments attempt to maximize welfare of constituents:  Government Influences that can create both inefficiency.

IGCSE®/O Level Economics

Lecture 4 Unemployment and Labor Market. UNEMPLOYMENT Under 16 years (70.5 Million) A distribution of Total Population to Labor Force, Employment, and.

Combining Supply and Demand Finding Equilibrium. Balancing a Market Equilibrium: the point at which quantity demanded and quantity supplied are equal.

1 Chapter 11 Practice Quiz Labor Markets Marginal revenue product measures the increase in a. output resulting from one more unit of labor. b. TR.

McTaggart, Findlay, Parkin: Microeconomics © 2007 Pearson Education Australia Appendix to Chapter 14: Market Power in the Labour Market.

Artificial Barriers Unit 6.3. Artificial Barriers –Your book looks at different scenarios at which there is an artificial barrier that prevents the market.

By Eoghan O Leary.  An employee is an individual who was hired by an employer to do a specific job.  The employee is hired by the employer after an.

ETP Economics 102 Jack Wu. Identifying Unemployment Categories of Unemployment The problem of unemployment is usually divided into two categories. The.

A2 Economics. Aim:  To understand wage determination Objectives:  Define economic rent and transfer earnings  Explain wage determination in perfectly.

Chapter 6 Prices: Combining Supply and Demand Combining Supply and Demand Buyers and sellers have to meet at a certain point Buyers and sellers have.

© The McGraw-Hill Companies, 2008 Chapter 16 Government spending and revenue David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 9th Edition,

Chapter 7 Labor and the Economy. Section A: How Wages Are Set Derived Demand: Demand for factors resulting from Demand for products Diminishing Returns:

Chapter 17 Taxes and government spending David Begg, Stanley Fischer and Rudiger Dornbusch, Economics, 6th Edition, McGraw-Hill, 2000 Power Point presentation.

Combining Supply and Demand Buyers and sellers have to meet at a certain point Buyers and sellers have to meet at a certain point This point is called.

Economic Systems WHAT IS ECONOMICS? DOES IT HAVE ANYTHING TO DO WITH YOU?

McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. Labor Unions.

Have you ever worked to earn some money? What jobs did you do for $? Did you feel that your pay was fair? Describe how you could have negotiated a higher.

Wage determination essay There are several factors that can influence wages. One will be in the question e.g. discuss the extent to which the minimum wage.

The Labour Market Academic year 2015/16 Introduction to Economics Augusto Ninni.

UNIT 3.3 –The role of Trade Unions

Setting Prices Advantages of prices –Prices are neutral because they do not favor the buyer or the seller. They are the result of competition Prices are.

Capitalism Socialism Individuals and businesses own property and the means of production Progress results when individuals follow their own self interest.

4.3 Occupation and Earnings

Labour Law. Collective Bargaining Union certification means that representatives need to selected to negotiate collective agreement Collective agreement.

LABOR UNIONS. Key Terms 1. Labor Union – organization of workers 2. Strike – workers refuse to work a. money b. benefits 3. lockout – when owners refuse.

Things to Study Chapter question work sheets (terms, opening questions, question sheet you did with the sub) TERMS! Practice term sheet again Notes Spectrum.

© Thomson/South-Western ECONOMIC EDUCATION FOR CONSUMERS Slide 1 Consumer’s Role in the Economy Objectives: By the end of class, students will be able.

People in Business Trade Unions. By the end if the lesson you will…  Be able to explain what a Trade Union is and can affect workers, customers, the.

Price floors & Price ceilings

Aggregate Supply What is aggregate supply? Short run aggregate supply

Wage Determination How much should you get paid?.

Disequilibrium Government Intervention

REVIEW 3.5 REWARDS FOR LABOUR.

THE NATIONAL MINIMUM WAGE

Differences in wage rates

The Labour Market.

Chapter 11 Quiz: Turn in by Monday 10-24

Part 7 FACTOR MARKETS.

Part 7 FACTOR MARKETS.

Unit 5: The Resource Market

The labour market The determination of relative wage rates and levels of employment in imperfectly competitive labour markets.

Country Situation Review: Group Work 1

Does Minimum Wage Help the Working Poor?

Presentation transcript:

Interference in the labour market

Minimum Wage  A minimum amount per hour which most workers are entitled to be paid.  U.S. minimum wage is 15,000 USD /year  Ghana minimum wage is 689 USD/year

Reasons for Minimum Wages  Increases the standard of living for the poorest and most vulnerable people in society.  Hopefully this would reduce poverty.

Reasons for Minimum Wages  Stimulates consumption by putting more money into the hands of people who quickly spend their entire paycheck.

The Effects of Minimum Wage Legislation  This can be illustrated using supply and demand.

Reasons Against Minimum Wages  Some people are willing to work for less, yet employers cannot hire them at that wage rate.  Reduces the quantity of workers demanded.  May cause price inflation.

Do minimum wages cause job losses?  Answer this correctly and you can skip the remaining economics classes for the year.  How does the elasticity of demand affect your answer?  What if the minimum wage is the same as the equilibrium wage?  What about the studies in your book?

Trade Unions  These are organisations that exist to protect the interests of workers.  Remember the voice of all is stronger than the voice of one.

Trade Unions  They negotiate pay and working conditions.  They provide legal protection.  They can put pressure on governments.

Trade Unions  A strong trade union can force wage rates to go up in some labour markets.  This wage rate may be above the equilibrium price for that kind of labour.  This is not market efficiency at its best.

Trade Unions  How would you feel about a strong trade union if you were an employee of a business?  How would you feel if you were the owner of the business?

Factors To Consider  Elasticity of demand for labour.  Machines do not go on strike.  Machines do not need dental insurance.  Does the employer need to hire only union employees?  Does the employee need to be a member of the union?