... 1: Explain why the labour demand curve is always downward sloping. The labor demand curve is affected by the wage in two ways. First, higher wages imply higher costs, which leads to higher product prices in order to cover the costs. This usually lowers the costumer demand, and the firms reduce their output, and need less employment. This is what we call the scale effect. The other effect is the substitution effect, where we assume that the price of capital is held constant. When wages increase the relative price of capital decreases, and the firms shift towards a capital-intensive mode of production. These two effects are the reasons why the labor demand curve is downward sloping. 2: Why would we expect that the slope of the labour demand curve of a firm in man- ufacturing is flatter than the slope of the labour demand curve of the entire manu- facturing sector. When the wages increase, the costs increase, and this leads us to increased product prices, which will lead to a decrease in the demand of the product. Because of this, the employment will decrease. Given these facts, we see that the wage’s final effect on employment depends on the elasticity of demand for the product. Because a single firm has a higher elasticity of demand than the entire market, their labor demand curve is flatter than the labor market demand curve of the entire market. 3: Derive the labour market equilibrium for the manufacturing sector if the demand for manufacturing goods increases...
Words: 1553 - Pages: 7
...* Key sets of labor market information include the monthly employment and unemployment numbers. The Current Population Survey (CPS) produces employment and unemployment statistics for the United States. All adult respondents are classified as employed, unemployed or not in the labor market. The numbers are typically calculated as simple percentages using the following formulae: * * 1) Number in the Labor Force = Number Employed + Number Unemployed * 2) Employment Rate = Number Employed/Number in Labor Force * 3) Unemployment Rate=Number Unemployed/Number in Labor Force Discuss how this information is useful to a business and give specific examples from each to demonstrate that you can locate and use it for a specific location. When unemployment is low consumers spend more money on expensive items and they give the economy a boost. When people are working, they are spending money. When unemployment is high it affects household finances. Consumers will spend less and are trying to make ends meet. When people are working, they are spending money. Businesses can use this info to forecast sales, determine how much inventory to buy, decide whether or not to lower their prices, or introduce lower cost alternatives. As an example, if unemployment is rising they should expect sales to be low until things begin to bounce back. United states Dept of Labor, Bureau of Labor Statistics Unemployment Rates for States Monthly Rankings Seasonally Adjusted ...
Words: 308 - Pages: 2
...Studies in Labor Markets Professor Ron Signore Columbia Southern University October 26, 2014 The internet may be changing job search behavior in the United States. Job search methods used by unemployed U.S. workers has increased significantly over the last decade, coincident with the rapid rise in Internet penetration. Moreover, in the United States where internet penetration has risen the most, the unemployed appear increasingly likely to use job advertisements for seeking and contacting employers directly. The vast majority of workers using the internet to gather information about employment are those who are already employed. Logically, workers use the internet for job search are more likely to leave their current employer. It is plausible, though far from certain, that online job search may increase the rate at which workers change jobs. The core problem job boards are facing, is that prospective employees who post their resume and credentials online face a strong incentive to conceal or slant information to make themselves seem more attractive to potential employers. Recognizing this, employers are likely to treat information posted to job boards with skepticism. If in part, employers view the information on job boards as untrustworthy, these boards can do little more than provide employers with names and numbers, leaving them to discover essential information about worker skills and qualifications through other mechanisms such as interviews, background checks...
Words: 419 - Pages: 2
...COMPARATIVE ANALYSIS – LITERATURE REVIEW 8 Public vs Private Sectors 8 Differentiate between formal & informal Sectors: 8 Private Sector Reforms: 9 Public Sector Reforms: 10 3.0 METHODOLOGY: 12 Primary Research: 12 Secondary Research: 12 POPULATION SAMPLING: 12 4.0 FINDINGS: DISCUSSION & ANALYSIS 12 Factors Contributing to the Change of Industrial Relations in the Region 12 Labor Reform Policies: 12 Globalization : 13 Economic integration 14 Change in Technology 14 Changes in Labor Law and Attitude towards Unions 15 Decentralization of Bargaining 15 Management Alteration 16 Conclusion: 17 The End . INTRODUCTION: Industrial relations today by many accounts, is in crisis. In academia, its traditional positions are threatened on one side by the dominance of mainstream economics and organizational behavior, and on the other by postmodernism. In policy-making circles, the industrial relations emphasis on institutional intervention is trumped by a neoliberal emphasis on the laissez faire promotion of free markets. In practice, labor unions are declining and fewer companies have industrial relations functions. The number of academic programs in industrial relations is therefore shrinking, and scholars are leaving the field for other areas, especially human resource management and organizational behavior. The importance of work, however, is stronger than ever, and the lessons of industrial relations remain vital. The challenge for industrial...
Words: 4622 - Pages: 19
...Introduction “Question: How much money does the United States spend on public elementary and secondary schools? Response: Total expenditures for public elementary and secondary schools in the United States amounted to $632 billion in 2010–11, or $12,608 per public school student (in constant 2012–13 dollars, based on the Consumer Price Index). These expenditures include $11,153 per student in current expenditures for operation of schools; $1,076 for capital outlay (i.e., expenditures for property and for buildings and alterations completed by school district staff or contractors); and $379 for interest on school debt. From 2000–01 to 2010–11, current expenditures per student enrolled in the fall in public elementary and secondary schools increased by 14 percent (from $9,751 to $11,153 in constant 2012–13 dollars). The amount for 2010–11, however, was lower than the amount for 2009–10 ($11,353).” 1 This increasing trend in US educational spending has existed for decades. It is only during economic downturns that the growth trend has stalled or had minor inversions, like mentioned in the excerpt above for 2009-10. It should also be noted that the growth trend of these dollars typically outpace the growth trend of CPI inflation. In other words, the percent of GDP that goes towards public education has been on the rise. Why the growing trends? Many believe that education is worthwhile because of the financial flexibility it affords individuals especially during the...
Words: 2289 - Pages: 10
...different ways that labor markets can be identified and approached. • Geographic Labor Markets – are markets labor markets classified by geographical area. There could be area based, local, regional, nation-wide labor markets. Local and area labor markets vary significantly in terms of workforce availability and quality. (Mathis & Jackson, Human Resource Management, p. 2008, 197) For example, one region can be short of local workforce, because of aging people and there is a high immigration of foreigners to fulfill these vacancies. Changes in a geographic labor market may force changes in recruiting efforts. (Mathis & Jackson, Human Resource Management, 2008, p. 197). For example, if a big company locates in the specific region, other local employers will have to give more effort to keep their employers and grant bigger wages just to keep them. • Global Labor Markets – are such markets when the company searches for the right employee globally. For example workers from Eastern Europe travel to work at cheap manual labor jobs, and the receiving countries are likely to accept them because workers’ demands are smaller and that is why they can pay less wages. Recruiting employees for global assignments requires approaches and understanding different from those used for typical recruiting efforts in the home country. (Mathis & Jackson, Human Resource Management, 2008, p. 198). Significant issue of global markets is government regulations by which the local labor force is protected...
Words: 1448 - Pages: 6
...LABOR MARKET RESEARCH REPORT Instructor | Nattalie Tessier | Course Title | MBA 579 – Internship Preparation | Student Name | Oluwagbemileke B. Oduroye | 568649909 | Section Number | S13 N71 | Due Date | 22th July, 2013 | I have read the Student Academic Code of Conduct and this Assignment complies with the Code MBA Program Faculty of Management Introduction Creative production, quantitative analysis, coaching and mentoring, managing people and teams, and application of technology are 5 core elements of work in business and other organizations that interest me; although, creative production and quantitative analysis are significantly stronger interests for me. I enjoy bringing something entirely original into existence, this might be inform of a product, marketing plan, unique service delivery and especially entrepreneurial work. An opportunity to be creative in any aspect of my work as a manger, executive or an individual contributor in a team is very important part of my work satisfaction. Although highly creative work can be found is almost any industry, and a major part of entrepreneurial work. Still, I prefer to work in an industry in which creativity is an integral part of the definition of the core product or service e.g. advertising and entertainment although entrepreneurship is the best match for me to express this interest. I also enjoy using mathematical analysis to solve problems. Although, this might seem divergent to the above stated interest...
Words: 3106 - Pages: 13
...Eloïse Stark Midterm Essay How to explain that women still get lower wages than men in the OECD countries? In western countries since the Second World War, women’s growing participation on the labor market has been one of the most profound transformations not only of the economy but also of society as a whole. Dual income families have become the norm and in a bid for sexual equality, most OECD countries have created laws to protect pay equality for men and women, such as the Equal Pay Act in 1963 in the US, or the article 119 of the EEC treaty. Nonetheless, women continue to earn less than men in all OECD countries. There are different ways of measuring this. Comparing annual or monthly earnings shows the difference between what both sexes “take home”, which is interesting from a sociological perspective. However we shall focus on the “gender pay gap”, defined as the “the relative difference in the average gross hourly earnings of women and men working full time”. This shows the difference between the actual “price” of women and men’s labor, taking into consideration the fact that men work more hours on average. How does the gender gap stand today? Despite differences between countries the gender pay gap remains a persistent characteristic of OECD labor markets. In 2006, women earned an average of 16% less than men, per hour worked. … Although we can see a slow but continuous drop over the past few decades in all countries In OECD countries, which are...
Words: 3444 - Pages: 14
...AND LABOR ECONOMICS Insert name Insert institution Insert course Insert date Abstract Labor economics comprises the study of the factors affecting workers. Since all divisions of economics involve workers, it is prudent to evaluate their influence on labor economics and labor market for that matter. Consumption directly affects the supply of labor. If the workers experience an increase in their desire for consumption in relation to leisure, the labor supply curve will shift outwards. The workers will supply more labor at every given wage. The effect of public finance on labor economics may be through government taxation on the workers. If income taxes increase, workers will likely substitute leisure for consumption and supply less labor. Any effects on the supply and demand for labor will ultimately affect the labor market thus are essential in labor economics. Distribution of income may also affect the labor market especially if the distribution is unequal. Inequality in the distribution of income will affect workers and thus affect labor supply. Production of goods and services on the other hand determine the supply and demand for labor. Such effects directly influence the labor market. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Effect of consumption on the labor market 4 Effect of income distribution on the labor market 5 Effect of exchange on the labor market 6 Effect of production of goods and services on the labor market...
Words: 1888 - Pages: 8
...Analysis Memo: LEVIS Strauss & Co., Global Sourcing By Yen-Ru (Angelina) Chen LEVIS Strauss & Co., is torn between two solutions: engage in the China market, or withdraw from the China market. The article outlines the benefits of working in the China market along with the challenges the company will be facing. If LS&CO. chooses to engage with China, it will be facing several challenges that may eventually go against their company value and company policy. There are unethical labor such as child labor and forced labor. Forced labor or prison labor is prohibited under Hawley-Smoot Tariff Act of 1930, this will become a problem to think about if LS&CO. were to cooperate with Chinese contractors. Although China has a big population, the buying power is not evenly distributed in the regions; however China is growing and it is still a big market with a good geological location. China is a big market and a growing economy with high population and future potential. Although it is unstable and we are not able to predict if China will fall, they also said the same thing about Japan back in 1950. In other words, this is definitely a risk that every company is taking. If LS&CO. don’t take this risk, they will be missing a huge opportunity and furthermore they may even fall behind in the market position when China eventually grows. Brand awareness in China is important and is definitely something LS&CO. should work on as it will get them more contractor...
Words: 465 - Pages: 2
...is collected into this pool, and the total overhead cost uses total number of direct labor dollars as its cost allocation base. These labor hours are consumed to give a single direct labor dollar burden rate. Failure of the Existing System: The major flaw in ETO’s existing system is that it assumes that all products consume direct labor and overhead in the same proportion. The critical problem that caused the existing cost system to fail is that the organization uses a single cost pool accounting system. The system considers all products to use direct labor and overhead in the same proportion. The different cost structure show some products are produced on equipment that is labor intensive while others require machine hours. Cost under Existing System: ICA: $2247 ICB: $5025 Capacitor: $2680 Amplifier: $1286 Diode $1272 Cost under System Proposed by the Accountant ICA: $2580 ICB: $5661 Capacitor: $1913 Amplifier: $1030 Diode: $1583 Cost under System Proposed by the Consultant ICA: $2765 ICB: $6281 Capacitor: $2011 Amplifier: $995 Diode: $1629 Preferred System The three-center system is preferred because it provides the most accurate information. The cost system shows differences in the way overhead is used in different parts of production. Recommendations We recommend that ETO revisits its market share structure. External customers are only 10% of the whole market share which means that majority are within Seligram....
Words: 253 - Pages: 2
...Historical Example of Labor Supply and Demand Darrell Scott Puehler XECO/212 April-13, 2012 Mathewos Kassa Historical Example of Labor Supply and Demand The Black Death was the largest demographic disaster in European history. Known as the "great pestilence," the Black Death arrived in Italy in late 1347 and made a clockwise movement across the continent where it eventually died out in the Russian hinterlands in 1353 (Routt, 2010) . It had a major impact on the demand and supplies of labor of the European economy especially the agricultural sector of the European job market. Because of the devastating effect of the Black Death, was not felt for a generation the supply for labor was plentiful due to the fact of the peasant population. If one peasant worker fell to his or her death during the onslaught of this pandemic disaster, then another was easily found to replace the lost worker. However, one generation later the effects of the Black Death on the labor market began to take shape. By the 14th century, the agricultural revolution and good climate had provided a high demand for land in England, which meant more workers were needed to farm this land thus, raising the demand for agricultural laborers (Peschke, 2007). However, the effects of the Black Death were finally realized. There was just too much land and not enough workers. The Black Death caused the supply of these workers to decrease and the resulting effect of the decrease in supply and the increase of demand...
Words: 313 - Pages: 2
...GENDER WAGE GAP INTRODUCTION Nowadays there are a lot of women graduates from universities, master programs and colleges. Also some studies showed that women are doing better in school then men (Buchmann, 2006). So why are women still not getting paid equally as men? We see that the gap is getting narrower and narrower throughout the years. However, pay gap between men and women still exist. After World War II, women were paid 60% of what men paid. This situation got better in 2000s. Studies showed that in 2009, women earn 80% of what men earn after one year they graduate from college (Day and Hill, 2007). Even though women's level of education is getting higher throughout the years, this improvement is not enough to getting pay equally as men. Women are continuing to earn less than men on average, and the convergence is not enough to compensate the gap in the upcoming years. This paper focuses on the worldwide gender pay gap and it gives general insights about the issue. I will try to explain the reasons of the gender pay gap between men and women. At the first part, I will briefly look at the issue historically. I will try to explain the trends of pay gay throughout the years. I will analyze the gender wage gap starting from the post World War II period. At the second part, I will explain some theories and studies about the reasons of gender wage gap. Some theories attribute this situation to “gender-specific”...
Words: 2614 - Pages: 11
...Supply and Demand of Labor Shannon Sampson XECO/212 James Nzokah April 20, 2012 Throughout history there have been many different events that have affected the supply and demand of labor, but there are few that have had as great of an effect as the Black Death. Considered to be one of the worst disasters to hit per industrial Europe, the Black Death swept through Europe from 1347 -1353, and was responsible for shifting the demand for labor and the supply of it in a way few other events have done at any point in history, Prior to the onset of the Black Death in 1347 (Routt, 2010) the demand for labor was lower than the supply of it, Europe was crowded and there was plenty of people to choose from to get the work done, so the lords were able to pay lower wages due to the shear fact that there was always someone willing to work for less just to put food on their table. In 1353 when all was said and done the population of the European people had been diminished by a staggering amount. (Routt, 2010) This lose in so many human lives shifted the ready supply of labor. Even though the demand for labor was less due to this same loss of life, it was still higher than the ready supply of labor. This shift to demand being higher than the supply meant that a person could charge more for their labors. This accrued all a crossed the labor markets so it effected everyone. (Routt, 2010) Bibliography Routt, D. (2010, april 02). The Economic Impact of the Black...
Words: 290 - Pages: 2
...Journal of Economic Perspectives—Volume 29, Number 3—Summer 2015—Pages 3–30 Why Are There Still So Many Jobs? The History and Future of Workplace Automation† David H. Autor T here have been periodic warnings in the last two centuries that automation and new technology were going to wipe out large numbers of middle class jobs. The best-known early example is the Luddite movement of the early 19th century, in which a group of English textile artisans protested the automation of textile production by seeking to destroy some of the machines. A lesser-known but more recent example is the concern over “The Automation Jobless,” as they were called in the title of a TIME magazine story of February 24, 1961: The number of jobs lost to more efficient machines is only part of the problem. What worries many job experts more is that automation may prevent the economy from creating enough new jobs. . . . Throughout industry, the trend has been to bigger production with a smaller work force. . . . Many of the losses in factory jobs have been countered by an increase in the service industries or in office jobs. But automation is beginning to move in and eliminate office jobs too. . . . In the past, new industries hired far more people than those they put out of business. But this is not true of many of today’s new industries. . . . Today’s new industries have comparatively few jobs for the unskilled or semiskilled, just the class of workers whose jobs are being eliminated...
Words: 13546 - Pages: 55
