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
