1. Chapter 9

2.  Tracking the Labor Force ◦ All nonmilitary people who are employed or unemployed ◦ Employed if;  16 or older  Worked at least one hr in the past week  Worked 15 or more hrs w/o pay in family business  Held a job, but didn’t work due to illness, disputes, or weather

3.  Unemployed if ◦ Temporarily out of work or not working, BUT have looked for jobs within the last four weeks  Not workers ◦ Discouraged workers ◦ Full-time students ◦ Stay at home parents ◦ retirees

4.  Occupational Trends ◦ Changing Economy  Farming to Industry/Manufacturing to Service/Information ◦ Fewer Goods, More Services ◦ Effects of International Competition  Outsourcing  Offshoring

5.  The Changing Labor Force ◦ College Graduates (learning effect, screening effect) ◦ Women at work  Women in Labor Force 1960 38%; 2010 62% ◦ Temporary Workers  Contingent employment ◦ Foreign-born Workers  15% of all workers  Guest workers

6.  Wages and Benefits Trends ◦ Real Wages Down  $241 in 1980 -> $222 today ◦ Cost of Benefits  Adds $7.87 per hour to wage on average  30% of total worker compensation  Problem with rising costs

7.  Supply and Demand for Labor ◦ Labor Demand  Derived demand  Productivity of labor ◦ Labor Supply ◦ Equilibrium Wage

8.  Wages and Skill Levels ◦ Unskilled labor (dishwashers, messengers) ◦ Semi-skilled labor (hourly wage, lifeguards, many factory and construction workers) ◦ Skilled labor (auto mechanics, bank tellers, chefs, carpenters) ◦ Professional Labor (salary, managers, teachers, bankers, doctors, pro athlete)

9.  Wage Discrimination ◦ Laws against wage discrimination  Equal Pay Act of 1963; EEOC ◦ Pay Levels for Women  “Women’s Work”  Human Capital  Women’s Career Paths

10.  Other Factors Affecting Wages ◦ Minimum Wage Laws ◦ Safety Laws ◦ Employer Response to Wage Levels ◦ Unions  Organization of workers that tries to improve working conditions, wages, and benefits for its members

11.  Labor and Labor Unions ◦ Collective Bargaining (simulation)  Negotiate a new contract ◦ Strikes  Stoppage of work ◦ Outside help to reach a settlement  Mediation – neutral person tries to suggest a solution that both sides will accept  Arbitration – neutral third party listens to both sides and then imposes a decision that is legally binding