1. C H A P T E R 1
The Labor Market

2. A Circular Flow Model of the Economy
Figure 1.1
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3. 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,< www/socdemo/education.html>.
Figure 1.2
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4. 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
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5. 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
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6. 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
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7. Level and Composition of Unemployment, 1972–2001
SOURCE: U.S. Bureau of Labor Statistics, historical data for the “A” tables, <
Figure 1.4
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8. The Determination of Wage Rates by
Demand and Supply
Figure 1.5
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9. The Market Adjustment to Shifts in
Demand and Supply
Figure 1.6
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10. Demand and Supply in the Market for Teachers
SOURCE: National Center for Education Statistics, Digest of Education Statistics, 2000, tables 65, 75, and 284 < U.S. Census Bureau, Historical Income Tables, table P-38 < /p38.html>.
Figure 1.7
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11. E N D