Presentation on theme: "Chapter 9 Sections 2 &3. Productivity: value of output Chef is paid $15 hr, but able to generate $20 hr in revenue. Will his productivity be desired."— Presentation transcript:
Supply and demand for labor follow the laws for supply and demand. If pay were high enough for chefs more people would be willing to invest in their human capital to earn that pay.
This point exists when there is neither an excess supply of workers, nor excess demand for workers in the labor market.
1. Unskilled Labor: no special skills, hourly wage 2. Semi-Skilled Labor: minimal skills, hourly wage 3. Skilled Labor: skills without supervision, hourly wage 4. Professional Labor: advanced skills and education, receives salary. Examples of each
This occurs when people with the same job, same skills and education, same job performance, and same seniority receive unequal pay.
The Equal Pay Act 1963: required equal pay for men and women at same workplace. Title VII of Civil Rights Act of 1964: prohibits job discrimination on the basis of race, sex, color, religion, or nationality.
The civil rights act also created the Equal Employment Opportunity Commission (EEOC)
“Women’s Work” Human Capital Women’s Career Paths
Minimum Wage Laws Safety Laws Employers Respond to Wage Levels Outsourcing, machines for people Unions
Less popular today, peaked during heavy industry. Average union salary is higher $5 an hour more, equals $200 a week.
1. Unions press employers to raise wages 2. Wages up, labor demanded goes down, therefore union jobs decrease 3. More workers then forced to seek nonunion jobs 4. Increase in nonunion labor supply forces those wages to go down
Also guilty of featherbedding, the practice of negotiating contracts that keep unnecessary workers on the company’s payroll.
Mediation: A settlement technique in which a neutral mediator meets with each side to try to find a solution that both sides will accept. Arbitration: A settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides.