Nobody downloaded yet

THE LABOR MARKET - Essay Example

Comments (0) Cite this document
Summary
The labor market is determined by the forces of supply and demand, and the demand for labor is derived, which means it is affected by the change in prices of products and services in the market. Marginal production in labor is the extra amount of output produced by an increase…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.7% of users find it useful
THE LABOR MARKET
Read TextPreview

Extract of sample "THE LABOR MARKET"

Download file to see previous pages No individual firm can influence the wages of labor, and neither can labor unions, whose primary role is to fight for better work conditions and better pay for its members.
In the short-run, the curve for labor demand is not flexible and is steep because, in a short time, firms do not get the adequate opportunity to respond to rapid changes in the market (Flinn, 2010). But in the long-run, this curve is flexible and flat since firms can adjust their schedules and processes to meet market changes. In a competitive market, a company will only hire some workers whose marginal benefit in productivity is the same as the marginal cost of labor. The company will only employ the number of employees it will be able to afford at the wage rate set by the market.
When a firm uses cheaper substitutes of labor, like machines, the demand for labor will decrease. If these tools are readily available, more efficient than manual labor, and the cost of employing labor substitutes is less than the marginal cost of labor, firms will demand less of labor. Availability of labor alternatives is being enhanced by rapid changes in technology, which produces equipment and machinery that can easily replace human labor. Another factor that would lead to a decrease in the demand for labor is a change in the number of firms in a particular industry. When there are numerous barriers to entry into an industry, the firms there will be few, and demand for labor will not increase when all other factors are held constant. Where there are few or no barriers to entry, an industry becomes very competitive so that firms can easily enter and trade. An increase in firms increases the demand for labor since human capital is needed to run these new companies.
If the market price of the product or service a company produces increases, the demand for labor will increase in the short-run and reduce in the long-run. When the prices rise, sales will yield ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“THE LABOR MARKET Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
THE LABOR MARKET Essay Example | Topics and Well Written Essays - 1000 words. Retrieved from https://studentshare.org/macro-microeconomics/1696958-the-labor-market
(THE LABOR MARKET Essay Example | Topics and Well Written Essays - 1000 Words)
THE LABOR MARKET Essay Example | Topics and Well Written Essays - 1000 Words. https://studentshare.org/macro-microeconomics/1696958-the-labor-market.
“THE LABOR MARKET Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1696958-the-labor-market.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF THE LABOR MARKET

Effects of Structural Changes in the Economy of United Kingdom and How the Labor Market is affected

...Effects of Structural Changes in the Economy of United Kingdom and How the Labor Market is affected Introduction Economy is one of the most significant forces that influence prosperity of a nation in terms of growth and development. Thus, any economy should be given a lot of attention on its improvement and towards making life easier for citizens of a country. Dynamism of the national, regional and global economy often affect people’s livelihood through different changes that affect the ability of an economy to employ people (Erdem & Glyn 73). This means that the manner in which the human resource departments of various organizations operate under different economic conditions is influenced by the...
14 Pages(3500 words)Essay

Labor Economics: Description and analysis of monopsony in the labor market

...AND ANALYSIS OF MONOPSONY IN THE LABOR MARKET Introduction: Monopsony is an economic term which means a condition when there is only a single buyer in the market and there are a number of sellers. Similar to monopolist, a monopsonist condition also has authority over price through a control over the quantity. A monopsonist confronts the supply curve that is between the price paid and quantity purchased. But a competitive buyer always accepts the price determined by the market. Therefore, a monopsonized market is characterized by a smaller quantity and a lower price. Just like monopoly, Monopsony also results in the inefficiency of the...
8 Pages(2000 words)Research Paper

The effects of globalization of the labor market

...? Globalization and the Labor Market Since man could travel over sea or land, elements of globalization have existed. Not until the end of the 1980s did globalization take on a whole different meaning. With this increased level of global commerce can benefit as well provide issues to governments and corporations alike. Globalization can be beneficial but in recent years it has become a detriment to many in the United States and other industrial countries. Rather a negative or positive influence in the world, once globalization was let out of the proverbial bag, there is no way to decrease its effect. With Globalization being such a used function of the world’s economic market, there was...
4 Pages(1000 words)Essay

The role of quantitative easing in distorting equity markets leading to a distortion in the labor market

...? THE ROLE OF QUANTITATIVE EASING IN DISTORTING EQUITY MARKETS LEADING TO A DISTORTION IN THE LABOUR MARKET Executive summary The US economy has faced severe financial breakdown during 2007 and since then it is suffering from the after effects of recession. The Euro zone is also victim to housing market crash during the same period and is still struggling to recover its economic condition. However, since mid 2009, these economies are showing signs of recovery, although fragile. The problems that are still persistent are high rate of unemployment, low investment, low inflation and income level. According to experts, this economic growth rate is insufficient for bringing high standards of economic performance in these economies... . The...
10 Pages(2500 words)Research Paper

Discrimination in the Labor Market

...Discrimination in the Labor Market "There is all the difference in the world between treating people equally and attempting to make them equal." Friedrich A. Hayek Nobel Prize winning Austrian Economist "In the end anti-black, anti-female, and all forms of discrimination are equivalent to the same thing: anti-humanism... ...
12 Pages(3000 words)Essay

The Effects of Migration on the Labor Market in Bucharest

.... This information is vital for stemming the tide of migration, which could be potentially damaging to the hotel industry in Romania. 3. Literature Review Literature review helps to examine existing data and provides direction for the research process. Literature related to migration that takes place from and in to Romania would be considered. The migration effects of the labor market would also be taken into account. 3.1. The labour market in Bucharest, Romania Bucharest is the largest city with a population of almost two million people in the south of Romania (Unknown 2006). However, in the year 2004 only half of this population was in employment (Unknown 2006) which...
12 Pages(3000 words)Research Paper

A race descrimination in the labor market

...employment challenges African-Americans face in the labor market, these scholars undertook an experiment which sought to discern whether or not potential employment candidates fared differently based upon race. The following is a brief overview of their study. Discrimination in the workforce affects people from all walks of life but as Bertrand & Mullainathan have shown, African-Americans face unique hurdles to their active employment in the United States today. Accordingly, job applicants with stereotypically sounding African-American names received “far fewer callbacks for each resume they send out” (Bertrand & Mullainathan 1,011). Seeking to understand the employment challenges facing...
2 Pages(500 words)Essay

Discussion Paper Week 6: What Factors Affect the Labor Market

...Factors Affecting the Labor Market School Part and parcel of a business venture are the key players in an organization. These are the people behind the success of an enterprise. As a leading company in employment recruitment, we guarantee an efficient quality in the personnel we train for employment dispatch. This is no easy trade for the reason that current workforce has increased in the past decades; hence, several aspects are carefully scrutinized before considering an applicant suitable for a certain job vacancy. Currently, we are in search for a qualified candidate to fill in a managerial position for an exclusive company. The usual scenario, however, dictates that experienced applicants fit the job...
2 Pages(500 words)Assignment

The Labor Market Discrimination

Also, the reduction of the discrimination from the beginning like in schools and the removal of complete disparity at this stage helps in developing more diverse society and a more effective labor market as well. The focus on skills rather than the creed and culture is also a major factor impacting the reduction of the Labor Market Discrimination. Other factors that also impact the Labor Market Discrimination include the opening up of fewer jobs for people and the acceptance of genders, castes and creed helps in improving the condition of the Labor Market Discrimination. The three movies that have been discussed in this class include Freedom Writers, Rossie the Riveter and Crash. The three movies although are of different genres a...
5 Pages(1250 words)Essay

Article Analysis of Immigration and the Labor Market

...Increased immigration will increase wages for U.S workers As argued in the article, the influx of immigrants into US will influence industries and corporations to invest in order to take advantage of cheaper labor force and intellect from immigrants (Porter web). However, in the long run, the expanded business will create more jobs and consequently better wages for U.S workers. Significantly, more jobs will be created when immigrants begin to become choosy in jobs in future. Wage Increments It is expected that the wage increments will slightly go down in the near future but rise steadily in the future. As immigrants proliferate job market, high supply versus low demand will bring wage down in the short...
1 Pages(250 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic THE LABOR MARKET for FREE!

Contact Us