LABOR ECONOMICS

collective bargaining

Process by which a union representing a group of workers negotiates with management for a contract

Labor Market Trend of the Early 2000s

REMEMBER THIS STATEMENT: An increase in service jobs accompanied by a decrease in manufacturing jobs.

race, sex, religion

What kinds of discrimination does the EEOC handle complaints?

1935 National Labor Relations Act

guarantees the rights of private sector employees to organize into trade unions, engage in collective bargaining, and take action such as strikes

What percentage of U.S. workers belong to a labor union?

14%

When did labor unions begin to gain some legal rights in the US?

1930s

labor union

An organization of workers that tries to improve working conditions, wages, and benefits for its members

What is the Fair Labor Standards Act?

Created a minimum wage, allowed time and a half, and got rid of child labor

Is an example of a company benefit when an employer makes payments to Social Security on behalf of the worker?

Yes

right-to-work law

a measure that bans mandatory union membership

Suppose the cost of having your teeth filled rises in your area. The result will likely be...

an increase in number of dental students in the area

glass ceiling

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

What is the glass ceiling?

an unofficially acknowledged barrier to advancement in a profession, especially affecting women and members of minorities.

Why would carpenters earn more money than a dish washer at a steak house?

because a carpenter is a skilled worker, they are doing labor that requires specialized skills and training. A dish washer is not a skilled worker therefore they will not earn as much money as a carpenter

Why would a worker take a job that offers less pay than another job that offers more pay?

because of company benefits; if the lower paying job has better benefits, they will take that job over the job that pays better but has bad/no company benefits

In the early 2000s, what types of jobs grew significantly?

computer related jobs

semiskilled labor

labor that requires minimal specialized skills and education

unskilled labor

labor that requires no specialized skills, education, or training

1932 Norris LaGuardia Act

outlawed yellow-dog contracts and restricted boycotts, strikes

white collar worker

someone in a professional or clerical job who usually earns a salary

If a worker decides to switch his job from being a data entry clerk in an office to a job in a steel mill, his wage will increase significantly. Why?

supply and demand; higher wages

What is physical capital?

the human-made objects used to create other goods and services

What happens to job opportunities in low-paying jobs when the minimum wage goes up?

the quantity of labor demanded goes down

What is arbitration? Example?

the settlement of a dispute by a third party, this happens if mediation fails and a third party comes and reviews the case and imposes a decision that is legally binding for both parties

What is human capital?

the skills and knowledge gained by a worker through education and experience

learning effect

the theory that education increases productivity and results in higher wages

What is screening effect?

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

equilibrium wage

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

Why is the equilibrium wage high for doctors?

there are fewer doctors and a very high demand

Why have labor unions declined?

they aren't strong enough 1. Blue collar workers are declining and they were most popular in unions 2. Manufacturing industries are getting hurt by foreign competition 3. Rising proportion of women and they are less likely to join unions 4. Relocating to South where they are known to be less friendly to unions

What is collective bargaining?

union and company representatives meeting to negotiate a new labor contract

Productivity

value of output

Why were labor unions needed in the first place?

workers wanted to change the poor working conditions, and increase wages