The Role of Labor

Terms in this set (36)

Wages
Payments received in return for work
Equilibrium Wage
The wage at which the quantity of workers demanded equals the quantity of workers supplied; The market price for labor
Derived Demand
The demand for a product/resource based on its contribution to the final product
Supply of Labor
The number of workers that are willing to work for specific wages
Wage Rates
The rates of pay for specific/works performed
Factors the Influence Wage Rates
1. Human Capital (knowledge and skill of the worker)
2. Working conditions
3. Discrimination in the workplace
4. Government actions
Glass Ceiling
Unseen barriers faced by women and minorities that interfere with professional advancement
Minimum Wage
The legal minimum amount that an employer must pay for one hour of work (Currently $7.25)
Gary Becker
Economist and Sociologist from the University of Chicago
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 Sectors
1. Primary: Jobs relating to natural resources
2. Secondary: Jobs relating to the production of goods and services
3. Tertiary: Jobs relating to service
Outsourcing
Practice on contracting with an outside company, usually in a foreign country, to provide goods and services (telemarketing)
Insourcing
Practice of foreign companies establishing operations in the US
Telecommuting
Performing office work in a location other than the office
Contingent Employment
Work that is temporary part time (seasonal work)
Independent Contractor
Someone who sells their expertise and service to others on an contractual basis
Labor Union
An organization of workers that seeks to improve wages, working conditions, fringe benefits and job security
Strike
Work stoppage that attempts to convince employers to meet the demands of the union
National Trades Union
1834: First national federation. Local craft unions formed a collective organization
Knights of Labor
1869: Organized workers by industry not by trade or skill level
Industrialization: Strong resistance to unions
1886: Deaths and serious injuries occurred in Chicago
1892: 10 workers killed in Homestead PA at the Carnegie Steel Factory
1894: Strike against the Pullman car Company won widespread support of railway workers across the country; but Federal Courts ruled against the union
Samuel Gompers
Introduced a different model for unions in 1886 when he started the American Federation of Labor (AFL)
American Federation of Labor
Sought higher wages, benefits and working conditions
Marry Harris Jones
1930s: Mother Jones led a march on President Roosevelt's residence to protest for the need for child labor laws
New Deal Legislation
In the 1930s, inions lost membership as millions lost their jobs
Unions gained strength
1. Norris-LaGuardia Act
2. National Labor Relations Act (Wagner Act)
3. Fair Labor Standard Act
Norris-LaGuardia Act
1932: Outlawed the practice of only hiring workers who agree not to join a union
Workers had the right to organize
National Labor Relation Act
(Wagner Act) 1935
Protected workers in the private sector to form unions and to use strikes and other actions
Fair Labor Standard 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 worker
CIO broke away from the AFl in 1938 and rejoined the AFL in 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 worlers
Union Shop
Businesses in which workers have a set amount of time to join a union after being hired
Collective Bargaining
The 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
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