Economics Chapter 9: The Role of Labor


Terms in this set (...)

payments received in return for work
equilibrium wage
wage at which the quantity of workers demanded equals the quantity of workers supplied
derived demand
demand for a product/resource based on its contribution to the final product (flow chart)
supply of labor
number of workers that are willing to work for specified wages
wage rates
rates of pay for specific jobs/work performed
human capital
knowledge and skill of the worker
human capital, working conditions, discrimination in the workplace, government actions
factors that influence wage rates
glass ceiling
unseen barriers faced by women and minorities that interfere with professional advancement
minimum wage
legal minimum amount of an employer must pay for one hour of work
current minimum wage
Gary Becker
economist and sociologist from the University of Chicago who believed that human capital is much more than education and training: human capital refers to all the investments that people make in themselves to improve their contributions to production
civilian labor force
made up of those who are 16 years old or older who are employed or are actively seeking work
changes in the US labor force
since the Post-World War II era, women have played an important role in the overall economy
economic sector; jobs related to natural resources such as farming, forestry, extracting of fossil fuels
economic sector; jobs that are related to the production of goods are services
economic sector; service-related jobs, banking, insurance, retail sales, education and communications
primary, secondary, tertiary
three economic sectors
practice of contracting with an outside company, usually in a foreign country, to provide goods are services (telemarketing, tech help, etc.)
practice of foreign companies establishing operations in the United States
means performing office work in a location other than the office
contingent employment
work that is temporary or part-time (seasonal work)
independent contractor
someone who sells their expertise and services to others on a contractual basis (ex: registered plumber who works as an appliance installer for Home Depot)
labor union
organization of workers that seeks to improve wages, working conditions, fringe benefits and job security
work stoppage that attempts to convince employers to meet the demands of the union
National Trades Union
local craft unions formed a collective organization
Knights of Labor
organized workers by industry not by trade or skill level
Samuel Gompers
introduced a different model for unions in 1886 when he started the American Federation of Labor (AFL)
American Federation of Labor
sought after higher wages, benefits, and working conditions
Mary Harris Jones (mother Jones)
led a march in 1903 on President Theodore Roosevelt's residence to protest for the need for child labor laws
New Deal legislation
during the 1930s unions lost membership as millions lost their jobs, unions began to gain strength through the what
Norris-LaGuardia Act (1932)
part of the New Deal legislation; outlawed the practice of only hiring workers who agree not to join a union; workers had a right to organize
National Labor Relations Act (Wagner Act) (1935)
protected workers in the private sector to form unions and to use strikes and other job actions
Fair Labor Standards Act (1938)
set a minimum wage, required extra pay for overtime work and made most child labor illegal
Congress of Industrial Organizations (CIO)
organized unions for industrial workers; broke away from the AFL in 1938 and rejoined the AFL 1955
Taft-Hartley Act (1947)
amended the Wagner Act and limited union activities; government under this law had more power to intervene if a strike might threaten national security
right to work laws
states attempting to reduce union influence
closed shop
business where employers may only hire union workers
union shop
businesses in which workers have a set amount of time to join a union after being hired
outlawed closed shop and weakened the union shop provision; gave states the right to make its own laws regarding union membership requirements
collective bargaining
way that businesses and unions negotiate wages and working conditions
binding arbitration
process in which an impartial third party resolves disputes between management and unions