《Economics from Miss Chen》Chp9.pptVIP

Chapter 9Labor Markets 9.1 THE ECONOMIC IMPROTANCE OF LABOR MARKETS Competitive labor market where the forces of demand and supply interact to determine wage rates and employment. Labor market channel in the economy through which supplies of essential labor are obtained by firms at acceptable prices and through which the population obtains most of its livelihood by selling its labor at offered wages and salaries. 9.1.1 Input and Living Standards 9.1.2 The Centrality of Labor exchange value (price) sharing of power in the economy distribution of earnings and wealth 9.1.3 Labor Market as Vehicles for Choices Households Which of their members are to seek employment (full-time or part-time) What search activity Which job Which members are to receive education and training Which member are to do the work of the household Which member are to migrate Consider Rates of pay Timing Costs of education and training Costs of migration and relocation Firms Hours of labor needed Best mix of labor and other inputs (machinery) Types of labor needed Hiring and firing Levels of “on the job” training Search for labor Rates of pay 9.2 THE LABOR FORCE: DEFINITION AND MEASUREMENT 9.2.1 Labor Force Labor Force the sum of number of unemployed and employed persons, for a chosen time period. the number of people, aged 15 and over, who worked for pay or profit, or who were unemployed. Employed those who worked for one hour or more for monetary return or who worked for 15 hours or more of unpaid work in a family business. Unemployed those who are available for work and who are actively looking for employment. Not in the labor force those who are neither employed nor unemployed. the aged, the very young, full-time students… 9.2.2 Participation Rate Participation Rate the proportion of the specific population that is in the labor force. expected rates of pay, taxation rates, social welfare payments, income of other household members… Unemployment Rate the ratio of the number of unemployed