Essay about Economics Notes

Submitted By Alyssa-Bartlett
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Pages: 5

Alyssa Bartlett
Mrs. Kelso
Chapter 9 notes ● Tracking Labor Force
○ Labor force­ all nonmilitary people who are employed or unemployed
○ the labor force contains small business owners as well
● Employment
○ the economists consider people 16 or older, and have met at least one of the following requirements:
○ the labor force worked at least one hour for pay within the past week
○ they worked 15 or more hours without pay in a family business, such as a farm
○ they held jobs but did not work due to illnesses, vacations, disputes, or bad weather ● Unemployment
○ people who do not meet these standards would be counted unemployed if they are temporarily out of work or haven't looked for jobs in the last 4 weeks
○ In order to be counted as unemployed they have to either have work lined up for the future or actively searching for a new job
● The Bureau of Labor Statistics
○ The BLS keeps track of the amount of people in the labor force and how many are employed or unemployed at any time
○ BLS can provide trending historical information, helping many things
Occupational Trends shifts in the job market reflect large shifts in what the economy creates in order to understand these, we must look at the historical context
● A Changing Economy
○ As its founding, the United States was nation of farmers
○ Agriculture played an important role in the economy, but in the 1800’s it started to yield to the industrial Revolution.
● Effects of International Competition
○ Service jobs increase but manufacturing jobs decrease.
○ Demand for skilled labor is rising, so wages for skilled workers go up, and the supply of skilled workers increases to meet the demand.
● Changing Labor Force
○ Typical american worker was a white man who had graduated high school and had found a secure 40­hour­a­week job, that he would hope to stay at until the age of 65.
○ But today someone can expect to have 4 or 5 different jobs during his or her working life.
● College Graduates

○ Learning effect­the 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.
Women at Work
○ in 1960 almost 38% of women belonged to the labor force, by 1995, that rate had jump to over 58%.
○ The presence of women in the labor market is expected to continue rising.
Temporary workers
○ Contingent employment a temporary or part­time job
○ Contingent employment has become more common even in white­collar, professional occupations that have traditionally offered some of the most secure jobs in the economy.
Trends in wages and benefits
○ Labor economics study not only who is in and out if the work force, but how they are doing in terms of earnings and benefits.
Supply and Demand for labor
○ Employment or unemployment in the labor market depends on how closely the demand for workers meets the supply of workers seeking jobs.
Labor Demand/ Supply
○ Demand for labor comes from private firms and government
○ Productivity value of output
○ The Higher the wage the larger the quantity of labor supplied.
Equilibrium wage
○ Equilibrium wage is the wage rate that produces neither an excess demand for workers in the labor market.
○ Economic factors­ the supply of labor and the demand for it­ combine to determine an equilibrium price.
Wage and Skill Levels
○ Wages vary according to workers’ skill levels and education.
○ Theses skill levels are categorized into four skill levels: Unskilled labor,Semi­skilled labor, Skilled labor, Professional labor.
Wage Discrimination
○ Wage discrimination occurs when people with the same job, same skills and education, same job performance, and same seniority receive unequal pay.
Laws Against Wage Discrimination
○ Congress passed several anti­discrimination laws that prevent companies from