Wages Labor Unions And Unemployment Flashcards
Why do wages differ?
Human capital
Working conditions
Government action
Discrimination
Human capital
Knowledge and skills levels Unskilled workers ex house cleaners Semi skilled ex construction Skilled workers ex mechanics Professional workers ex doctors
Working conditions
Higher wages are often paid to workers in dangerous and unpleasant
Government action
Minimum wage- lowest wage legally given
Federal minimum wage- 7.25
Nys minimum wage 8.75
Discrimination in the work place
Discrimination on race, gender, religion
Unemployment rate
(U3) percentage of the labor force that is jobless and actively looking for work
Bureau of labor statistics
BLS calculates the rate of employment each month
Who is counted in the unemployment rate
At least 16
Not currently employed
Have been looking for work in the past 4 weeks
Approximently how big is the U.S. Labor force
156 million people
Types of unemployment
Frictional
Structural
Cyclical
Seasonal
Frictional unemployment
Temporary unemployment experienced by people changing jobs
Structural unemployment
Jobs exist but worked don’t have the necessary skills for the jobs
Cyclical unemployment
Caused by a part of the business cycle with decreased economic activity
Seasonal unemployment
Linked to seasonal work
Full employment
Unemployment is not caused by decreased economic activity
Underemployed (U6)
People employed part time who want to work full time or those who work at a job below their skill level
Wages
The price of labor
Payments workers receive in return for work
Governed by the forces of supply and demand
Labor union
Organization of workers who seeks to improve wages working conditions hours and job security
Closed shop
A business in which an employer can hire only union members not legal since 1947
Union shop
A business in which workers are required to join a union within a set period of time after being hired
Rights to work law
Legislation that makes it illegal to require workers to join unions
Collective bargaining
Process of negotiation between a business and it’s organized employees to establish wages and improve working conditions
Binding arbitration
A process by which a impartial third party resolved disputes between management and unions
Strike
Worked stoppage used to gain negotiation power while attempting to convince an employer to improve wages working conditions etc
