labour economics
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Labour Economics. Persaud April 6, 2013. Labour as a Resource. The demand for labour is viewed in the same way as the demand for goods and services How do we figure out how much labour we need in the market place? - PowerPoint PPT PresentationTRANSCRIPT
Labour Economics
PersaudApril 6, 2013
Labour as a Resource
• The demand for labour is
viewed in the same way as the
demand for goods and services
• How do we figure out how
much labour we need in the
market place?
• Workers are the suppliers,
business firms are the
consumers and the price is the
wage rate
Demand for Labour
• Direct Demando Can be looked at as the demand for goods and services.
o Directly use our dollars to indicate how much we want the
goods/service (utility) at every price level.
• Derived Demando Derived or dependent on consumer demand for the good or
service.
o In other words, the greater the quantity demanded of a good or
service, the greater the quantity of labour demanded to
produce it.
Productivity
• Important concept when looking at the labour market.
• Not just important to know how much of a product is
demanded, the labour market is also affected by how
MUCH each worker can produce in a specified period of
time.
Marginal revenue product of labour (MPRL)
• Explains how demand for labour is derived
• As an additional unit of labour is added to a firm’s
productive process, the additional output that is created is
known as the marginal product.
• See page 172 in your text books Fig. 8.1
Factors that shift the labour demand curve
• There is a change in quantity demanded as the price of labour
changes
• Factors that may shift the labour demand curve:o Change in the demand for the product of labour.
• (e.g. if there is a decrease in demand for cars, then the demand for auto workers will decrease)
o A change in the price of other productive resources
• If it is cheaper to use automation in a factory, the demand for the factory workers will decrease
o A change in worker productivity
• If workers are more productive, then the demand for them will increase – better worker training and/or better management
Supply of Labour
• Number of people willing to offer their services to firms at
each of the possible wage rates
• As wages increase, more people are willing to offer their
services in the labour market.
Considerations that affect the supply curve:
- specific skills – eg doctor
- geographic location – remote area fewer people
- jobs that seem unpleasant/dangerous – fewer people
willing offer their services
Factors that shift the labour supply curve
• Changes in the income tax rates – more taxes, less workers
• Changes in size and composition of the populationo Age distribution ex.
• Changes in household technology – more free time to enter
the workforce
• Changes in attitudes around work – women, gen x
Unemployment Rate as an Economic Indicator
• Unemployment Rate : the % of the labour force who are
not working but are actively seeking employment
• On board calculation.
Milestone 1• Date 1
Milestone 2• Date 2
Milestone 3• Date 3
Milestone 4• Date 4
Timeline
Date 1 Date 2 Date 3 Date 4
Timeline
Date 1 Date 3
Timeline
Video : Generation Jobless CBC Doc Zone
Video : Generation Jobless CBC Doc Zone
• http://www.cbc.ca/doczone/episode/generation-jobless.html
Looking Ahead
• When is the next milestone?
• What are the expected
deliverables?
• Known risks and issueso What is the investigation timeline for
these issues?
• What are the immediate next
steps?
Dependencies and Resources
Project
Vendors
Manufacturing
Sales
Engineering
Remote Teams
Appendix
Appendix
• Budget
• Design documents
• Marketing plan
• Supplemental documents
• Contact information