1. Chapter 2 Overview of the Labor Market

2. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-2 FIGURE 2.1 Labor Force Status of the U.S. Adult Civilian Population, June 2004

3. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-3 TABLE 2.1 Labor Force Participation Rates by Gender, 1950 – 2004

4. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-4 FIGURE 2.2 Unemployment Rates for the Civilian Labor Force, 1900–2003 (detailed data in table inside front cover)

5. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-5 FIGURE 2.3 Employment Distribution by Major Nonfarm Sector, 1954–2003 (detailed data in table inside front cover)

6. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-6 TABLE 2.2 Nominal and Real Hourly Earnings, U.S. Nonsupervisory Workers in the Private Sector, 1980–2003

7. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-7 FIGURE 2.4 Relationship between Wages, Earnings, Compensation, and Income

8. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-8 FIGURE 2.5 The Markets in Which Firms Must Operate

9. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-9 TABLE 2.3 Labor Demand Schedule for a Hypothetical Industry

10. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-10 FIGURE 2.6 Labor Demand Curve (based on data in Table 2.3)

11. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-11 FIGURE 2.7 Shift in Demand for Labor Due to Increase in Product Demand

12. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-12 FIGURE 2.8 Possible Shifts in Demand for Labor Due to Fall in Capital Prices

13. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-13 FIGURE 2.9 Market Supply Curve for Secretaries

14. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-14 FIGURE 2.10 Shift in Market Supply Curve for Secretaries as Salaries of Insurance Agents Rise

15. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-15 FIGURE 2.11 Supply of Secretaries to a Firm at Alternative Market Wages

16. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-16 FIGURE 2.12 Market Demand and Supply

17. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-17 FIGURE 2.13 Demand and Supply at the "Market" and "Firm" Level

18. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-18 FIGURE 2.14 New Labor Market Equilibrium after Demand Shifts Right

19. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-19 FIGURE 2.15 New Labor Market Equilibrium after Supply Shifts Left

20. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-20 FIGURE 2.16 New Labor Market Equilibrium after Supply Shifts Right

21. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-21 FIGURE 2.17 Effects of an Above- Equilibrium Wage

22. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-22 FIGURE 2.18 Effects of a Below- Equilibrium Wage

23. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-23 FIGURE 2.19 Labor Supply to the Military: Different Preferences Imply Different "Rents"

24. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2-24 TABLE 2.4 Unemployment and Long-Term Unemployment, Selected European and North American Countries, 2003