EKN Chapter 9 Flashcards
Purely competitive labor market
A resource market in which many firms compete with one another in hiring a specific kind of labor, numerous equally qualified workers supply that labor and no one controls the market wage rate.
Wage
The price paid for the use of services of labor per unit of time.
Nominal wage
The amount of money received by an worker per unit of time; money wage.
Real wage
The amount of goods and services a worker can purchase with his or her nominal wage; the purchasing power of the nominal wage.
Strike
The withholding of labor services by an organized group of workers (a labor union).
Exit mechanism
The process of leaving a job and searching for another one as a means of improving one’s working condition.
Voice mechanism
Communication by workers through their union to resolve grievances with an employer.
Wage discrimination
The payment of a lower wage to members of a less preferred group than that paid to members of a more preferred group for the same work
Discrimination
The practice of according individuals or groups inferior treatment in hiring, occupational access, education and training, promotion, wage rates or working conditions even though they have the same abilities, education, skills and work experience as other workers.
Wage differentials
A compensating differential, which is also called a compensating wage differential or equalizing difference, is the additional amount of income that a given worker must be offered in order to motivate them to accept a given undesirable job, relative to other jobs that workers could perform.
Affirmative actions
Programmes and policies that establish targets of increased employment and promotion for women and minorities.
Minimum wage
The lowest wage that employers may legally pay for an hour of work.
