Overview of the Labor Market-劳动经济学讲义课件.pptVIP

Overview of the Labor Market Structure of the Lecture Basic labor market variables How the labor market works Labor demand Labor supply Labor market equilibrium Applications: effects of institutions and policies on labor market equilibrium Basic Labor Market Statistics Structure of labor force Unemployment statistics Sectoral trend of employment Labor earnings Labor Force Participation Rates Definition: labor force/ population over 16 LFPRs for men are falling (US) 86.8% in 1950, 77.9% in 1980, 75.0% in 1997 LFPRs for women are rising (US) 33.9% in 1950, 51.6% in 1980, 59.8% in 1997 China: 65.6% in 2001. Pattern of unemployment rates Current Population Survey-- monthly survey In the past week, if you did not work Did you look for work? Did you expect recall? Unemployment rates higher in recent years than before the Great Depression, But the fluctuations are lower now than before. Stories are different in China. Job Creation and Destruction Industrial and occupational shifts due to economic development international trade economic reform Job are destroyed and created simultaneously. The gross change is not captured by unemployment rate. Unemployment rate is high when the rate of destruction is higher than the rate of creation. Job Creation and Destruction in China MOA official: 20M farmers to lose jobs due to WTO entry. Many other scholars: SOE reform will bring massive job losses. Pessimism due to the lack of attention paid to job creation. WTO will create more jobs than it destroys. Important to smooth the way for job creation along with SOE reform. Existing institutions hinder job creation. The Earnings of Labor Growth of Wages Real wage = nominal wage / price index Example: Table 2.2 How the Labor Market Works Supplier of labor Demander of labor Determine: Terms of employment - wage Level of employment Labor demand decision Labor demand is negatively related with wage. Shifters: Output of product -- scale effect (+) Price of capital Scale effect (-) Sub