1. Bell Ringer At your desks: Discuss with your classmates the assigned homework from yesterday. Share the responses that you obtained from your parent or grandparent. Compare your parent/grandparents place of employment to your job today or present day jobs in general. How do both compare to the conditions of work we discussed in class yesterday?

2. Section 2 Chapter 9 – Labor and Wages

3. Objectives 1. Identify the groups of people that make up the labor force of the United States 2. Analyze the relationship between supply and demand in the labor market 3. Understand the connection between wages and skill levels 4. Compare and Contrast the effect of working conditions, discrimination, and unions on wage rates

4. Vocabulary Labor Force Productivity Equilibrium Wage Unskilled Labor Semi-Skilled Labor Skilled Labor Professional Labor Affirmative Action Glass ceiling Featherbedding

5. Vocabulary Labor Force – all nonmilitary people who are employed or unemployed Productivity – value of output Equilibrium Wage – the wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market

6. Vocabulary Unskilled Labor – labor that requires no specialized skills, education, or training Semi-Skilled Labor – labor that requires minimal specialized skills and education Skilled Labor – labor that requires advanced skills and education Professional Labor – labor that requires advanced skills and education

7. Vocabulary Affirmative Action – the use of policies, programs, and procedures to ensure the inclusion of minorities and women in job hiring, and the awarding of government contracts Glass ceiling – an unofficial, invisible barrier that prevents women and minorities from advancing in businesses dominated by white men Featherbedding – the practice of negotiating labor contracts that keep unnecessary workers on a company’s payroll

8. Labor Force 16 or older Worked at least 1 hr/wk for $ Worked 15hrs/wk unpaid in a family business Ex. Farm Illness, Vacation, Labor Disputes, Bad Weather Employed Unemployed 16 or older Not institutionalized Temporarily laid off Reporting to new job within 30 days Actively seeking Jobs NOT IN THE LABOR FORCE!!! Full-time students Stay at home parents Retirees “Discouraged Workers” Institutionalized Bureau of Labor Statistics

9. Unemployment Supply and Demand Supply Demand

10. Productivity A cook is paid $12 an hour for generating $20 an hour in revenue An entrepreneur opens a new restaurant and offers $15/hour, still making a $5 profit The first restaurant would have to increase wages to keep cook If this continues cooks will earn close to their productivity which is $20

11. Supply Demand

12. Firms’ response to high wages Cut labor costs by substituting machines for people ATM

13. Equilibrium Wage Supply Demand

14. Skill Levels Unskilled Hourly Wage Restaurant servers, Janitors Semi-skilled Hourly Wage Lifeguards, Cooks Skilled Hourly Wage Mechanics, Carpenters, Plumbers Professional Salary Teachers, Managers, Doctors, Athletes

15. Un-Even Pay Ex. Demand for doctors is high, supply is low Jobs that are high in accident and fatality rates pay more

16. Wage Discrimination Equal Pay Act (1963) Civil Rights Act (1964) Title VII Affirmative Action EEOC

17. Wage Discrimination MinoritiesWomen Education Opportunities Wage Gap 75% of what men earn Earning Gap 1. “Women’s Work” 2. Human Capital 3. Career Paths Glass ceiling

18. Wages and Unions Featherbedding

19. Karl Marx