Modern Labour Economics Chapter 3 The Demand for Labour

Table 3.1 – The Marginal Product of Labour in a Hypothetical Car Dealership (capital held constant)

Figure 3.1 – Demand for Labour in the Short Run (Real Wage)

Table 3.2 – Hypothetical Schedule of Marginal Revenue Productivity of Labour for Store Detectives

Figure 3.2 – Demand for Labour in the Short Run (Money Wage)

Figure 3.3 – Effect of Increase in the Price of One Input (k) on Demand for Another Input (j), Where Inputs Are Substitutes

Figure 3.4 – The Effects of Monopsony

Figures 3.5 – The Monopsonist’s Short-Run Response to a Leftward Shift in Labour Supply

Figure 3.6 – Minimum Wage Effects under Monopsony: Both Wages and Employment Can Increase in the Short Run

Table 3.3 – Payroll Taxes as a Percent of GDP,

Figure 3.7 – The Market Demand Curve and Effects of an Employer-Financed Payroll Tax

Figure 3.8 – Payroll Tax with a Vertical Supply Curve

Table 3.4 – Payroll Related Taxes and Other Mandated Expenses as a Percent of Hourly Compensation, 1981, 1991, 2001

Figure 3A.1 – A Production Function

Figure 3A.2 – The Declining Marginal Productivity of Labour

Figure 3A.3 – Cost Minimization in the Production of Q* (Wage = $10 per Hour; Price of a Unit of Capital = $20)

Figure 3A.4 – Cost Minimization in the Production of Q* (Wage = $20 per Hour; Price of a Unit of Capital = $20)

Figure 3A.5 – The Substitution and Scale Effects of a Wage Increase