Chapter 1 - Introduction to labour market economics. After studying this chapter you will be able to understand: Main actors and roles, labour supply and demand, policy questions, characteristics of market, neoclassical and alternative approaches. | Chapter One Introduction to Labour Market Economics Created by: Erica Morrill, Fanshawe College Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Chapter Focus Main actors and roles Labour supply and demand Policy Questions Characteristics of market Neoclassical and alternative approaches Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Labour Market Participants Individuals Firms Government Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Decisions by Individuals When to enter the labour force How much education/training Type/extent of job search Occupation/Industry Labour hours/household work Accept/quit/ relocation Wage rate Union/association Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Labour Market Behaviour Positive Aspects Obtaining a job Promotion Increase in wage rate Benefits Negative Aspects Unemployment Job displacement Discrimination Poverty Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Decisions by Employers # of workers Wages/benefits Hours Layoff /bankruptcy . | Chapter One Introduction to Labour Market Economics Created by: Erica Morrill, Fanshawe College Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Chapter Focus Main actors and roles Labour supply and demand Policy Questions Characteristics of market Neoclassical and alternative approaches Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Labour Market Participants Individuals Firms Government Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Decisions by Individuals When to enter the labour force How much education/training Type/extent of job search Occupation/Industry Labour hours/household work Accept/quit/ relocation Wage rate Union/association Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Labour Market Behaviour Positive Aspects Obtaining a job Promotion Increase in wage rate Benefits Negative Aspects Unemployment Job displacement Discrimination Poverty Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Decisions by Employers # of workers Wages/benefits Hours Layoff /bankruptcy Subcontract Pension/retirement policy Global Competition Legislative Environment Changing Workforce Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Global Competition Influences Free trade Industrial restructuring Deregulation Privatization Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Changing Workforce Age Gender Ethnic diversity Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Legislative Environment Human Rights Minimum wage Overtime Maternity leave Worker’s compensation Occupational health/safety Pensions/mandatory retirement Labour laws/collective bargaining Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. individual rights vs. employer competitiveness public support Training Insurance Compensation Pensions Vocational rehabilitation Decisions by Government Chapter 1- © 2002 McGraw-Hill Ryerson Ltd. Labour Market Economics Involves analyzing the determinants of the various dimensions of labour supply and demand and their interaction in alternative market structures to determine wages, .
