Econ ch 9
Contingent employment
a temporary or part-time job "Temp"
Well the number of service jobs has increased the United States has lost
Manufacturing jobs
Guest workers
Members of the labor force from another country who are allowed to live and work in the United States only temporary
The higher the wage the larger the
Quantity of labor supplied
Seeking to reduce their production cost some industries have
Relocated from the Northeast to in Midwest to the south which has historically been less friendly to unions
Skilled labor
Require specialized abilities in training to do tasks such as operating complicated equipment skilled workers need a little supervision yeah usually earn an hourly wage they include auto mechanics bank tellers plumbers firefighters chefs and carpenters
Equal pay act of 1963
Required that male and female employees in the same workplace performing the same job receive the same pay
Semi skilled labor
Requires minimal specialize skills and education such as operation of certain types of equipment semi skilled workers usually earn an hourly wage they include lifeguards work processor short order cooks in mini construction and factory workers
Unskilled labor
Requires no specialized skills education or training workers and these jobs usually earn an hourly wage include dishwashers messengers janitors and many farmworkers
What new corporate empires were born in the early 1900s
Rockefellers standard oil in 1863 Andrew Carnegie steel works in this 1870s H Ford automobile company in 1903
Who started the United States labor movement
Samual Gompers Young cigar maker rose within union ranks in New York City focusing on three goals higher wages shorter hours and safe for work environments in 18 8060 founded the American Federation of labor
OSHA policies were issued in an effort to
Save lives prevent injuries and protect the health of workers in the private sector
Some economists argue that union suppress the wages of nonunion workers what is their reasoning for that
1 unions press employers to raise their members wages 2 when we just go up the quantity of labor demand goes down does the number of union jobs decreases 3 as union jobs are cut more workers are forced to seek nonunion jobs 4 an increase in the supply of nonunion workers causes the wage rate for nonunion jobs fall
What are some several reasons identified by experts for the increase of temporary employees
1. It's flexible and can lay off temporary workers when they need to 2. They are paid less and getting fewer benefits than full-time 3. Discharging temporary workers is easier and less costly 4. Some workers prefer not temporary jobs
In 1990 on the 17.7 million Americans worked in manufacturing 15 years later the number has fallen to
14.2 mill
In 2005 foreign born workers numbered about 22 million people which is nearly what percent of all workers in the United States
15%
Real weekly wages have fallen about how much in 27 years
19$
How long do union contracts generally last
2 to 5 years and can cover hundreds of issues the resulting contract spells out each sides rights and responsibilities for the length of that agreement generally the union comes to the bargaining table certain goals does at the agenda for collective-bargaining talks
What percentage of workers compensation do benefits make up
30% Ss and Medicare are included
The bureau of labor statistics reports that average weekly earnings rose from 241 and 1980 to almost in 2007
590
In 1960 almost 38% of women belong to the labor force by 2010 that rate was projected to be over what percent
62% Women were encouraged to pursue a higher education and add to the human capital
Go to thousand five employer provided benefits added blank an hour to the cost of workers
7.87
In 2008 the bureau of labor statistics reported at 72.7% of women ages 25 to 54 were employed this was down from what percent in 2000
74.9%
What are right to work laws
A Measure that bans mandatory union membership
Employers may take action to try to affect wage levels, example
A company might try to cut labor cost by substituting machines for people in other words employers can replace human capital physical capital
What is one group who is considered to be outside of the labor force
A group called discouraged workers are people who once sought work but have given up looking for a job
What is the effect a union having a strike when the contract is about to expire
A lengthy one can cripple a company some firms can continue to function by using managers to perform key tasks
The expansion of workers rights in the 1930s contributed to
A new rise in union strikes, membership crew reaching about 35% of the nations non-farm workforce in the 1940s
In order to be counted as unemployed
A person either must have work lined up for the future or must be actively searching for a new job
Mediation
A settlement technique in which a neutral person the mediator meets with each side to try to find a solution that both sides will except
Arbitration
A settlement technique in which a neutral third-party listens to both sides and then imposes a decision that is legally binding for both the company and the union
Featherbedding
A tactic some unions have engaged in it is when they negotiate labor contracts that keep unnecessary workers on the company payroll
What do economists define the labor force as
All non-military people who are employed or unemployed
Labor union
And organization of workers that tries to improve working conditions wages and benefits for its members
Strike
And organize work stoppage intended to force an employer to address union demands employers responded by firing and replacing workers who tried to organize workers cannot find help in the courts because the courts treated unions as illegal
Why wage gap Human capital
Overall women have less education training and experience in men dislike of human capital makes women's labor and economic terms less productive as a result for a women are eligible for the higher paying traditionally male dominated jobs and field such as engineering
What did people who did not support minimum wage argue
Artificially increase in the price of labor actually causes a decrease in quantity demanded
In the past 100 or so years the United States has shifted from a manufacturing economy to a blank economy
Service
Derived demand
Because it is derived or set by the demand for another good or service in this case that other demand is the demand for what a worker produces for example the demand for cooks in the market depend on the demand for restaurant meals
Right to work laws may be one of several reasons for the decline in union membership in recent decades...
Buy 2005 union membership had dropped to about 8% of the labor force today unionism in the United States is far more limited than in many other countries
How does being a temp work
Companies that have a pool of experience workers who can be hired out to organizations on a short-term basis for organization that needs to workers pays the temp agency the agency intern pays the worker a share of that fee keeping the rest to cover expenses and profit
What did companies use involving courts to make its workers not form a union
Court order is called in junctions to for striking employees back to work some companies hire their own militia is to harass union organizers or fight striking workers
Fair labor standards act of 1938
Created a minimum wage and require employers to pay overtime for work beyond 40 hours a week
In the mid 20th century what led to a boom in new factory jobs
Electronics like radio and television
Factor of why wage gap between men and women women's career paths
Even today some employers assume that female and boys are not interested in career advancement this perception can be a roadblock for women in the workplace the challenges many women face and trying to balance child rearing and career add to this perception
Equal Employment Opportunity Commission
Federal agency created to enforce the Civil Rights Act of 1964, which forbids discrimination on the basis of race, creed, national origin, religion, or sex in hiring, promotion, or firing.
The service sector includes
Financial services banking education and online services
Workers who are unhappy with their wages have several choices what are they
Get higher paying jobs from another employer change careers join a labor union and press for higher pay
One of the key goals of unions
Get wage increases for their members negotiate wage levels as a group rather than having to deal individually with employers their combined bargaining power sometimes more effective as at persuading employers to raise wages
People who support unions counter that without the ability to organize workers
Have little power compared to that of employees
By the early decades of the 1900s what had become the powerhouse of the US economy
Heavy manufacturing
What did supporters of the minimum wage argue
Help support us American workers are in enough to support themselves
What else does the BLS provide information about
Historical trends The percentage of the US population in the labor force has increased from 59.2% in 1950 to 66% in 2005 the number of employed civilians in the US in 2005 was about 141.7 million nearly 76,000,000 of these workers women on the 66 million were women
The bureau of labor statistics provides answers to two important economic questions what are they
How many people are in the labor force and how many are employed and unemployed at any given time
To get jobs people must have
Human capital, the education training and experience that make them useful in the workplace
Are union gains the right to represent workers at a company when
Immaturity of workers in a particular work units such as a factory vote to except the union after that the company is required by law to bargain with the union in good faith to negotiate an employment contract
What is known as the information age
In the 1970s the revolution in personal computers opened another new horizon for employment as computer use continues to rise the demand for computer related occupations continues to grow some traditional jobs from trucking to farming to car sales now require some computer sales by the early 2000s over half of American workers reported using computers on the job
Featherbedding example
In the railroad industry in the early days of railroads a caboose man had to ride at the back of the train to operate a rear brake that stopped the train yet even after design changes allowed the engineer at the front of the train to operate rear brakes unions managed to keep caboose men on the payroll these workers receive full wages and benefits for doing nothing
Title VI I of the civil rights act of 1964 prohibited
Job discrimination on the basis of race sex color religion or nationality
In the beginning America was built with
Just a bunch of farmers
Economist offered to exclamations for the connection between educational advancement and higher wages what are they
Learning effect and screening effect
Because the equilibrium price makes a quantity that suppliers want to sell equal to the quantity demand does want to buy there is a tendency for the price or quantity
Not to change
Our production of services is increasing faster than
Our production of goods
For many workers benefits such as —- and ——a significant sheriff total compensation
Pensions and health insurance
The demand for labor comes from
Private firms in government agencies that hire workers to produce goods and services
Another theory for union decline is it other institutions now provide many of them
Services that had been one in the past thru union activity for example the government has passed laws setting workplace safety standards in a shorter work week it provides unemployment insurance and Social Security more non-unionized employers offer benefits such as medical insurance
The rising proportion of women in the labor force also has affected union membership....
Since women have been less likely to join unions
What are some opinions on the impact of immigrants on the labor force
Some analyst say that immigrant workers hold down the wages of Americans Immigrant workers for an important role in the economy
As union grew some unions begin to abuse their power...
Some slight to preserve outdated and inefficient production methods in order to protect jobs, featherbedding in order to keep more members employed as a result companies that badly needed to improve efficiency to stay competitive found that unions could be an obstacle
Blue-collar workers
Someone who performs manual labor often in a manufacturing job and who earns an hourly wage
A blank is a unions ultimate weapon
Strike
As early as in 1790s whispers of worker discontent grew into organize protest skilled workers begin to form unions to protect their interest this was the beginning of
Strikes
The shifts and demand for workers are another example of
Supply and demand in operation Demand for skilled service workers is rising so wages for skilled workers goes up
In an effort to curb union power of Congress passed the
Taft Hartley act in 1947 Allowed states to pass right to work laws measures that band mandatory union membership today most right to work states are in the south which has a lower level of union membership and other regions
What changed the main occupation of farmers in America
The focus on agriculture gradually Yoda to the industrial revolution the coming of the machine age energize economy and create a new jobs in textile mills shoe factory's and other new manufacturing enterprises
Why have average real wages decreased in the last couple of decades
The greater competition from foreign companies has decrease the demand for workers do you regulation of mini domestic industries may have forced firms to cut employees wages as competition has intensified the increase use a temporary work has also held down wages
Offshoring
The movement of some of a company's operations to another country
Electronic jobs Grew mainly in
The north east and Midwest and company such as general electric Westinghouse carrier in Goodyear
Collective bargaining
The process in which union company management meeting negotiate a new labor contract
At market equilibrium the quantity of a good supplied will equal
The quantity of a good demanded
Productivity of labor
The quantity of output produced by a unit of labor
Learning effect
The theory that education increases efficiency of production and that's result in higher wages College educated workers have higher median income than high school dropouts income continues to increase as people gain even more education people with doctorate and professional degree such as doctors and lawyers are more than people with bachelors degrees
In a competitive labor market workers are usually paid according to
The value of what they produce
Equilibrium wage
The wage rate or price of labor services that is sad when the supply of workers meet the demand for workers in the labor market
Certain manufacturing and industries such as automobiles steel and textiles have traditionally employed large numbers of union workers....
These industries have been hurt by foreign competition in recent years as a result many industries have laid off union workers which has cut into union strength
Economist consider people to be employed if
They are 16 years or older and meet at least one of the following requirements They worked at least one hour for pay in the last week They worked for 15 or more hours without pay and a family business such as a farm or family owned store and they held jobs but did not work due to illnesses vacations labor disputes or bad weather
Unions became a dominant force in many industries...
They control of the day today operations of activities from shipbuilding to garbage collection steel production unions and asked billions of dollars in union days to cover the cost of union activities including organizing making political donations and providing aid to striking workers
What also caused the decline of the reputation of unions
They're linked to organized crime, corrupt crime bosses gain a foothold in many local unions and use union funds to finance a legal operations
Screening effect
This theory suggests that the completion of college signals to employers that a job applicant is intelligent and hard-working the skills and determination necessary to complete college may also be useful qualities for employees to have a college degree does not increase productivity but simply identifies people who may be good employees because of their perseverance and eight skills
How do we know the direction of changes in the job market ?
Thr Bureau of labor statistics of the us dep of labor surveys households to assemble info on the labor force
The BLS reports the blank rate each month
Unemployment
Nationally who earns higher wages union members or nonunion members
Union members, and 2005 the average union wage was nearly 5 dollars an hour higher than the average wage for a non-union wage earner that amounts to a $200 difference in a 40 hour work week
130 suggested structural changes in the US economy have causing a membership to decline for example
Unions have traditionally been strongest among blue-collar workersThese workers perform manual labor often in a manufacturing job and earn an hourly wage the decline of manufacturing activity has caused union jobs to disappear
Glass ceiling
Unofficial barrier that sometimes prevents women and minorities from advancing to the top ranks of organizations that are dominated by white men
The supply of labor comes from people willing to work for
Wages
Goals in collective-bargaining
Wages and benefits, working conditions, job security
Outsourcing
When an employee is laid off due to plant closings or moves to little work or the replacement of jobs with new technology these results and outsourcing which is when companies contract with another company to do a specific job that would otherwise be done by companies workers those companies will outsource work in someway
Unions are weakest among what type of workers
White collar workers Someone in a professional or clerical job who usually earns a weekly salary
Factor of why wage gap between men and woman "Woman's work"
Women have historically been discouraged from entering certain high-paying occupation such as doctors lawyers and corporate managers instead they have been encouraged to pursue careers such as teaching nursing and clerical work with so many women seeking work and his occupation so labor supply has been generally high as you know a large supply of labor tends to be relatively low equilibrium wage
Professional labor
Work that requires advanced skills and education
What's your companies force workers to sign
Yellow dog contracts in which workers promise not to join a union yellow is slang for a Coward
Competition among restaurants results in a wage for cooks
that reflects the cooks productivity
