Topic 4 - Labour Markets Flashcards
What is a non-wage outcome
Non-wage outcomes are the benefits that many employees receive in addition to their wages. These outcomes can include company cars, laptops, phones and cash bonuses.
True or False
Cash bonuses are not usually tied to workplace performance.
It’s false. Cash bonuses are often tied to workplace performance. This is because the possibility of additional money incentivises workers to improve productivity and output.
What are the requirements to be considered employed?
To be considered employed, an individual must be:
- Working at least one hour or
- On paid or unpaid leave, strike, worker’s compensation, working shift arrangements, or self employed.
Is overtime pay a non wage outcome?
No
What is the definition of derived demand?
Derived demand is demand for labour.
What are the different types of unemployment?
- Cyclical - which occurs due to variations in economic activity.
- Structural - occurs because of issues relating to the market itself. Examples such as developments in technology is a cause of this.
- Frictional - refers to the workers who are temporarily unemployed because they are between jobs or new entrants in the labour market.
What is salary packaging?
Salary packaging occurs when firms decrease an employee’s income and supplement it with other benefits.
What is the formula for Unemployment Rate
Unemployment Rate = (# of unemployed workers / total labor force) * 100
How is the population of the workforce calculated?
Employed + Unemployed = Workforce.
Differences in Wage in Outcomes are comprised of 4 factors. What are they?
- Skill Level
- Working Conditions
- Occupational Mobility
- Bargaining Power
Jobs pay higher or lower wages depending on the factors listed above.
What are the trends in the labour market?
- Unemployment
- Underemployment
- Part-time work
- Casualisation of work
- Outsourcing
- Contractors/sub-contracting.
True or False
Working remotely is a non-wage outcome.
It’s true! Working remotely is a non-wage outcome. As part of their compensation, some firms might allow employees to work from home, adding a lot of value to employees trying to improve their work-life balance.
How is the participation rate calculated?
The participation rate is calculated through P.R = Labour Force/ Working-age population x 100/1.
True or False
Under the Fair Work Act 2009, all employees must receive at least one non-wage outcome.
It’s false, industrial relations laws do not require employers to provide non-wage outcomes to employees. However, they are becoming more common in the labour market.
Name factors that affect supply of labour
Remuneration, working conditions, geographic mobility of labour
Define labour force
People aged 15 years and over engaged in full time or part time employment and those officially recognised as being unemployed
Argue for a more equitable distribution of income from work
- Incentive effects - individuals are encouraged to undertake longer and difficult training and education to receive higher income to work longer and
Harder
What is the role of a union
They try to maximise the benefits flowing to its members and represent workers in dispute resolutions
Why is labour a derived demand
It is the demand for goods and services produced by labour
