Document Sample
CHAPTER 9—LABOR Powered By Docstoc
					    REGULAR ECONOMICS—CHAPTER 9—LABOR—de Varona—Period 5
   Approximately 13 percent of U.S. workers belong to labor unions.
   Collective bargaining is when union and company representatives meeting to negotiate a new labor contract.
   Wages for a particular job are determined by the equilibrium between the supply and demand for workers for
    that job.
   Race, sex, color, religion, or nationality discrimination complaints are handled by the EEOC.
   An automatic teller machine is an example of using physical capital instead of human capital to get a job done.
   According to economic theory, the quantity of labor demanded goes down in low-paying jobs when the
    minimum wage goes up.
   In inflation-adjusted dollars, average wages in the United States have stayed the same in the last 20 years.
   When did labor unions begin to gain some legal rights in the United States during the 1930s.
   Computer-related jobs are expected to grow significantly.
   The employer’s payments to Social Security could be considered company benefits.
   Mark is switching from his job as a data entry clerk in an office to a job in a steel mill. One reason his wages
    will increase significantly in his new job is that it is more dangerous to work in a steel mill than in an office.
   When your grandfather and his friends entered the work force in 1950, they were likely to have jobs in factories
    producing electronics.
   Tracy, a recent college graduate who earned straight “A’s” as a history major, is applying for a job as a legal
    assistant. Although she does not have a background in law, she hopes to land the job because of the screening
   Juan is deciding between a job with Company X that pays $500 a week and a job with Company Y that pays
    $550 a week. He decides to take the job with Company X, whose lower compensation is offset by its benefits
    such as health insurance and stock options.
   Current labor market trends include an increase in service jobs accompanied by a decrease in manufacturing
   The equilibrium wage for doctors is high because the supply of doctors is relatively low and the demand is
    relatively high.
   You live in a community with many teenagers, and you work during the summer bagging groceries for a low
    hourly wage. If you lived in a community with fewer teenagers looking for grocery bagging jobs your wages
    would probably be higher because demand for baggers would be higher.
   The label in your jeans says that they were made in a Latin American country. This is probably because the
    jeans manufacturing company wanted to locate its plant where labor was plentiful and therefore cheaper.
   Emily has been waiting for a promotion to a management position for almost five years. When she notices that
    men fill most of the higher-level jobs in her company, she suspects that her company has a glass ceiling.
   Carpenters usually earn more than dishwashers because of a greater demand for carpenters than for
    dishwashers, a carpenter is a skilled worker, while a dishwasher is a semi-skilled worker, and a greater danger
    of on-the-job injury for carpenters than for dishwashers.
   Labor unions arose largely in response to the dangerous working conditions and long hours of factory jobs in
    the 1800s.
   The strength of labor unions has declined in recent years because the number of white collar jobs is increasing,
    the number of blue collar jobs is decreasing, and some manufacturers have relocated to countries where labor is
    cheaper or to the American South.
   Your cousin tells you that his trucking company has resorted to arbitration with the trucker’s union. This means
    that a neutral third party is reviewing the dispute and will impose a legally binding decision.
   In your community there are enough lawncare workers to fill all the lawncare jobs available. There are also no
    unemployed lawncare workers. You can assume that the wage paid to lawncare workers is in equilibrium.
   Suppose the cost of having your teeth filled rises in your area. The result will likely be an increase in the
    number of dental students in your area.
   A measure that bans mandatory union membership is the right-to-work law.
   The wage rate that gives neither an excess supply of workers nor an excess demand for workers is called the
    equilibrium wage.
   The glass ceiling is the unofficial, invisible barrier that prevents women and minorities from advancing in
    businesses dominated by white men
   Labor that requires minimal specialized skills and education is semiskilled labor.
   The theory that education increases productivity and results in higher wages is called the learning effect.
       A labor union is an organization of workers that tries to improve working conditions, wages, and benefits for its
       Productivity is the value of a worker's output.
       Someone in a professional or clerical job who usually earns a salary is a white-collar worker.
       A strike is an organized work stoppage intended to force an employer to address union demands.
       Skilled labor are workers who require specialized training and skills.
       The wage rate that gives neither an excess supply of workers nor an excess demand for workers is called
        equilibrium wage.
       A settlement technique in which a third party reviews the case and makes a decision that is legally binding for
        both sides is arbitration.
       Contingent employment is temporary or part-time employment.
       Screening effect is the theory that the completion of college indicates to employers that a job applicant is
        intelligent and hard-working.
       Productivity is the value of a worker's output.
       Featherbedding is the practice of negotiating labor contracts that keep unnecessary workers on a company’s

According to Figure 9.11, the white men group has the highest salary, African American women earn more than
Hispanic women, Hispanic men earn $25,271, on average, and the Hispanic women group has the lowest salary. Also,
white women earn more than Hispanic men, and African American women earn, on average $27,297.

**To be employed, a person must have worked at least 1 hour for pay within the last week, worked 15 hours or more
without pay in a family business, or held a job but not actually worked because of vacation, illness, etc.
**More women work today because they tend to be better educated, technological progress has made housework take
less time, most families require two incomes, and the rise in divorce rates has made many women the primary earners in
their households.
**The difference between arbitration and mediation is that mediation is a settlement technique in which a neutral
mediator meets with each side and tries to find a solution to a problem. The proposal is not binding. Arbitration is a
binding settlement that is reached by a third party. People sometimes use arbitration after mediation has failed.
**People are considered unemployed if they are 16 years or older, are not institutionalized, are not working, and meet
one of these criteria: they are temporarily laid off from a job, they will be reporting to a new job within 30 days, or they
have looked for work within the last 4 weeks.
**Equilibrium wage is the wage rate at which there is neither an excess supply of workers nor an excess demand for
workers. It is the point at which supply and demand meet, where there is no pressure to raise or lower the price of labor.
**When hiring contingent workers, firms can easily adjust their work force, hiring and laying off workers to meet
changing demands. It is also easier for firms to discharge temporary workers, and firms can pay these workers less both
in wages and benefits.

Reg Econ Ch 9

Shared By: