Chapter 4 Labor Market Equilibrium

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Chapter 4. Labor Market Equilibrium

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Presentation transcript:

Chapter 4 Labor Market Equilibrium Order is not pressure which is imposed on society from without, but an equilibrium which is set up from within. -Jose Ortega y Gasset

4.1 Equilibrium in a Single Competitive Labor Market

4.1 Equilibrium in a Single Competitive Labor Market

4.1 Equilibrium in a Single Competitive Labor Market

4.1 Equilibrium in a Single Competitive Labor Market

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.2 Policy Application

4.3 The cobweb model

4.3 The cobweb model

4.3 The cobweb model

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

4.4 Noncompetitive Labor Market: Monopsony and Monopoly

Summary A competitive economy where a homogeneous group of workers and firms can freely enter and exit the market has a single equilibrium wage across all labor markets. There is no unemployment in a competitive labor market because all workers who wish to work can find a job at the going wage. A competitive equilibrium leads to an efficient allocation of resources. No other allocation of workers to firms generates higher gains from trade.

Summary

Summary

Summary