2.  The study of labor is part of macroeconomics or the branch of economics that deals with the economy as a whole  Employment  Gross domestic product  Inflation  Economic growth  The distribution of income

3.  Civilian labor force-men and women 16 and older who are either working or actively looking for a job  140 million Americans belong  Excludes those in armed forces, prison or other institutions

4.  The development of unions started in the colonial period  Peaked in the 1930’s What do labor unions do?

5.  Craft or trade union-association of skilled workers who perform the same kind of work  Industrial union-association of all workers in the same industry, regardless of the job each worker performs  Strike, picket or boycott

6.  Collapse of the stock market in October 1929  1 in 4 workers were jobless  1929 average manufacturing wage=$0.55/hour  1933 average manufacturing wage=$0.05/hour

7.  Right-to-work law-state law making it illegal to force workers to join a union as a condition of employment, even though a union may already exist at the company

8.  1886 The American Federation of Labor (AFL) was formed  1935 The Committee for Industrial Organization (CIO) was formed  1955 the AFL and CIO joined to form The American Federation of Labor and Congress of Industrial Organization (AFL-CIO)

9.  Closed Shops- the employer agrees to hire only union members  Union Shops-workers do not have to belong to the union to be hired, but must join to remain employed

10.  Modified Union Shops-workers do not have to belong to the union to be hired, and cannot be made to join one to keep their jobs  Agency Shops- does not require workers to join a union as a condition to get or keep a job, but does require them to pay union dues to help pay collective bargaining costs

11.  Mediation-bringing in a neutral 3 rd party to help settle a dispute  Arbitration-both sides agree to place their differences before a 3 rd party whose decision will be accepted as final  Fact-finding-agreement between union and management to have a 3 rd party collect facts about a dispute and provide nonbinding recommendations

12.  Injunction-court order not to act  Seizure-temporary takeover of operations to allow the govt. to negotiate with the union  Presidential Intervention

13.  Unskilled Labor (physical labor)  Semiskilled Labor (operate machinery)  Skilled Labor (operate complex machinery)  Professional Labor

14.  Traditional Theory of Wages  The supply and demand for a worker’s skills and services determine the wage or salary  Theory of Negotiated Wages  Organized labor’s bargaining strength is a factor that helps determine wages  Signaling Theory  Employers are willing to pay more for people with “signals” or superior ability

15.  Decrease in unions  Lower pay for women than men  Increase in part-time employment  Increase in the minimum wage