5.5

Outsourcing

A decision by a corporation to turn over much of the responsibility for production to independent suppliers.

Explain why contracted workers are often more attractive alternatives for employers

Contracted workers have a particular term to be served and cannot leave before that and for fixed price and company does not have to give any social security or compensation to these workers.

Describe what the learning effect demonstrates about continuing education

It makes you smarter until you seek more knowledge.

Offshoring

The practice of exporting U.S. jobs to lower paid employees in other nations.

Explain why companies engage in offshoring

The primary reasons that companies turn to offshoringare to find highly skilled employees not available locally and to save costs on software development.

Guest Workers

Workers who migrate to the more developed countries of Northern and Western Europe, usually from Southern of Eastern Europe or from North Africa, in search of higher-paying jobs.

learning effect

the theory that education increases productivity and results in higher wages

screening effect

the theory that the completion of college indicates to employers that a job applicant is intelligent and hard working

labor force

the total number of workers, including both the employed and the unemployed

Describe how the screening effect is beneficial to employers

Learning effect is the theory that education increases productivity and results in higher wages while screening effect is the theory that suggests that completion of college indicates to employers that a job applicant is intelligent and hard-working.

Give two examples of employment data that the Bureau of Labor Statistics provides information about.

-wage data/average income -unemployment figures explanation

Ignacio owns a small business that employs 12 full time workers. He has recently been told by his financial advisor that he would benefit financially from adopting a contingent employment strategy. Describe what Ignacio would have to do in order to take his financial advisors advice.

Ignacio would have to fire some of his full time workers and hire contingent workers. Contingent workers are independent contractors. So Ignacio wouldn't be responsible for paying employment taxes since contingent workers are responsible for handling their own taxes.

Explain who pays social security taxes and why

Most taxpayers have to pay Social Security taxes on their income, regardless of whether they work for an employer or are self-employed. However, there are some groups of American taxpayers that are exempt from paying Social Security tax.

Harry is a 34 year old sergeant in the United States Air Force. He has been employed full time with the Air Force since graduating from college. Is Harry considered to be apart of the US labor force? Why or why not?

The civilian labor force of a country is the combination of employedpersons and unemployed persons in the country. Since Harry is in the US Air force, he is not in the Civilian Labor force and therefore, he is not in the US labor force.

Describe who makes up the labor force

The labor force is the number of people who are employed plus the unemployed who are looking for work. 1 The labor pool does not include the jobless who aren't looking for work. For example, stay-at-home moms, retirees, and students are not part of the labor force.

contingent employment

a temporary or part-time job