Economics Ch 9

how are strikes damaging to workers and companies

Workers: might lose job, do not necessarily get paid. Companies: Lose out on productivity

right to work law

a mearue that bans mandatory union membership

arbitration

a settlement techinque in which a third party reviews the case and imposes a decision is legally binding for both sides

mediation

a settlement techniue in which a neutral mediator meets with each side to try to find a solution that both sides will accept

what generally happens to the equilibrium wage when (a) demand for workers is low and supply is high (b) demand for workers is high and supply is low?

a. equilibrium wage is low b. equilibrium wage is pretty high

who does the government include in the labor force

all non military people who are employed or unemployed

labor force

all nonmilitary people who are employed or unemployed

strike

an organized work stoppage intended to force an employer to adress union demands

labor union

an organiztion of workers that tries to improve working conditions wages and benefits for its members

glass cieling

an unofficial invisible barrier that prevents women and minorities from advancing in businesses dominated by white men

what is a right-to work law

bans mandatory union membership

how do the laws of supply and demand affect the labor market

if demand for a job is low, supply is high than wages are low. If demand is high and supply is low, than wages are higher

professional labor

labor that requires advanced skills and education managers, teachers

semi-skilled labor

labor that requires minimal specialized skills and education ex lifeguards and construction workers

unskilled labor

labor that requires no specilaized skills education or training ex janitors dishwashers

skilled labor

labor that requires specialized skills and training ex: bank tellers, plumber

how do minimum wage and safety laws affect wages

minimum wage: set a certain amount of money people have to earn, less people employed by company Safety: a lot of safety lowers wages because less risk

how does skilled labor differ from professional labor

skilled: less education and skills, hourly wage professional: salary, more education and skills

white collar worker

someone in a professional or clerical job who earns a salary

blue collar worker

someone who works in an industrial job often in manufactoring and who receives wages

collective bargaining

the process in which union and company representative meet to negotiate a new labor contract

productivity

value of output

equlibrium wage

wage rate that produces neither an excess supply or workers nor an excess demand for workers in the labor market

what are some of the key goals of labor unions

wages better conditions shorter work week

how do mediation and arbitration differ

workers and company must follow an arbitration agreement but do not have to follow a mediation agreement