C H A P T E R The Demand for Labor in the Short Run 4

© 2003 South-Western 2 The Pattern of Employment Growth in the U.S. Economy, 1950–2001 Figure 4.1 Note: Employment figures do not correspond to those reported in Chapter 3 since those in Chapter 3 are from a household survey, and these figures were obtained from an establishment survey (except agriculture). These figures are more reflective of the total number of jobs, as opposed to the total number of people employed; for example, one person may hold more than one job. Source: Bureau of Labor Statistics, Establishment Data, ; Agricultural employment obtained from the Current Population Survey.

© 2003 South-Western 3 Data Necessary to Derive A Hypothetical Firm’s Labor Demand Curve Table 4.1

© 2003 South-Western 4 The Relationship Between Total and Marginal Product Schedules Figure 4.2

© 2003 South-Western 5 A Hypothetical Marginal Revenue Product Schedule and Labor Demand Curve Figure 4.3

© 2003 South-Western 6 The Impact on the Labor Demand Curve of Changes in Product Demand and Market Structure Figure 4.4

© 2003 South-Western 7 Derivation of the Market Labor Demand Curve Figure 4.5

© 2003 South-Western 8 The Five Categories of Demand Elasticity Figure 4.6

© 2003 South-Western 9 The Change in Elasticity over a Linear Downward- Sloping Demand Curve Figure 4.7

© 2003 South-Western 10 The Growth in Nonagricultural Employment over the Business Cycle, 1947–2001 Figure 4.8 SOURCE: Department of Commerce, Survey of Current Business (Washington, D.C.: Government Printing Office) and Bureau of Labor Statistics,

© 2003 South-Western 11 Percent Decline in Industry Employment during Recessions Table 4.2 SOURCE: Norman Bowers, “Have Employment Patterns in Recessions Changed?” Monthly Labor Review 104, no. 2 (February 1981): 15–28. Data for the 1981 to 1982 and 1990 to 1991 recessions calculated by authors.

© 2003 South-Western 12 The Length of the Average Workweek over the Business Cycle, monthly 1948–2001 Figure 4.9 SOURCE: Department of Commerce, Survey of Current Business (Washington, D.C.: Government Printing Office) and Bureau of Labor Statistics,.

© 2003 South-Western 13 Employment Growth in 10 Consumer Goods Industries, 1980–2000 Table 4.3 SOURCE: U.S. Census Bureau, Statistical Abstract of the United States: 2001, Table 609.

© 2003 South-Western 14 The Effect of a Wage Subsidy Program on Labor Demand Figure 4.10

© 2003 South-Western 15 The Effect of Import Restrictions on Auto Employment Figure 4.11

© 2003 South-Western 16 Impact of Import Restrictions on Price and Employment in Seven Industries (in 2000 dollars) Table 4.4

© 2003 South-Western 17 The Demand for Labor and Wage Concessions Figure 4.12

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