1. 1 Any extra credit? Speak now or forever hold your peace. What will we learn today? What will we learn today? 12.4.1 Operations of the labor market, establishment of unions, benefits for their members, effects of unionizations, the minimum wage, unemployment insurance, etc. 12.4.2 Current economy and labor market, types of goods and services, types of skills workers need, etc. 12.4.3 Discuss wage differences among job professions using laws of supply and demand. Unit: Labor Day 5 What is a labor union? Are your parents in one? How can they be a good thing? Do employers like them? How can they be a bad thing? If you aren’t sure, tell me your best guess.

2. Assignment 3: Chapter 9 Phocabulary Labor force (211) Learning effect (214) Screening effect (214) Contingent employment (215) Glass ceiling (224) Labor union(225) Blue collar worker (231) White collar worker (232) Collective bargaining (233) Arbitration (234) 2

3. Assignment 4: 9.1+9.2 Notes 3

4. 4 9.1 Labor Market Trends Labor force- all non military people who are employed or unemployed. A person is a part of labor force if: worked at least 1 wk for pay worked for 15 hrs. without pay in family business held job but did not work due to illness, vacation or bad weather. People not included in labor force are students, stay at home parents and retirees.

5. 5 The changing labor force To get jobs today, people must have human capital- the education, training and experience that make them useful in the working place. Education effects wage earnings (More education=more income) Learning effect- the theory that education increases productivity and results in higher wages. Screening effect- the theory that the completion of college indicates to employers that a job applicant is intelligent and hardworking.

6. 6 9.2 Labor and Wages Supply and Demand for Labor Employment or unemployment in labor markets depends on the demand for workers and the number of jobs available. Derived demand- demand that is determined by demand for another good or service (Ex. cooks in market depend on restaurants) Equilibrium wage- wage rate that produces neither an excess supply of workers nor an excess demand for workers in the labor market.

7. 7 Wages and Skill Levels Unskilled Labor- labor that requires no specialized skills, education, or training (Ex. factory and farm workers) Semi skilled labor- labor that requires minimal specialized skills and education (Ex. lifeguards and some construction workers) Skilled Labor- labor that requires specialized skills and training (Ex. firefighters and bank tellers) Professional labor- labor that requires advanced skills and education (Ex. doctors and teachers

8. 8 Discrimination in wage has affected minorities and women. Minorities and women were paid less, were last hired and first fired and denied positions of power. Wage Discrimination- people who have the same job, skills, and education receive unequal pay. Glass ceiling- invisible barrier that prevents women from advancing in businesses dominated by white men. Women today suffer from wage gap. For every dollar a man makes, a women makes.75 cents, doing same job. Wage discrimination

9. Assignment 5 9.1+9.2 Assessment 1. What groups of people does the government consider to be (a) in the labor force; (b) employed (c) unemployed? 2. How is the screening effect different from the learning effect? 3. Are you part of the labor force? Explain. If so, would the government consider you employed during the past week, or unemployed? 4. How do the laws of supply and demand affect the labor market? 5. According to economic theory, what happens to job opportunities in low- paying jobs when the minimum wage goes up? 6. How does skilled labor differ from professional labor? Give an example of each. 7. Choose two occupations, one that pays high and one that pays low wages. Explain the pay differences in terms of supply and demand. 9 Section 1 Section 2

10. Take the online practice test for Chapter 9. It is required! 10