1. Unit 1: Introduction Unit 2: Definitions, facts, and trends Unit 3: The demand for labor Unit 4: The supply of labor Unit 5: The determination of wages

2. 2. Definitions, facts, and trends Markets: buyers & sellers Labor market: employers & employees Employers  demandEmployees  supply Labor market of doctors, engineers, professors, etc. Both employers and employees can be in several markets at the same time

3. EAP = LF + out of LF LF: actively (E+U) participate in the labor market; out of LF: retirees, voluntary unemployment, “stigmatized o marginalized” LF = E + U  U = LF – E u(%) = (U/LF)*100 Another indicator: PR (%) = (LF/EAP)*100 2.1 Labor force and unemployment

4. 2.2 Labor market trends Different patterns of u(%): US & UK v. EU – Why? Institutions, shocks, interactions, etc. In US the PR (%) stayed around 60-66% in last 60 years Men: from 85% to 70%; Women: from 35% up to 60% Another trend: growth of services sector (education, health, leisure, finance, etc.)  3-sector hypothesis Workers are better trained now (“recycling”)