This video from Geoff is an excellent way to look at why the perfect labour market is only an assumption. It also looks at possible solutions and evaluates government policy. Excellent for any essay you might attempt in this area.
Click here to access an excellent article on how monopsonist employers are driving down wages in the US.
Showing posts with label labour markets. Show all posts
Showing posts with label labour markets. Show all posts
Thursday, 20 September 2018
Wednesday, 5 September 2018
Y13 Labour Markets
1. Discuss Factors That determine wage differentials in the UK? (30)
2. To what extent are wages determined by Marginal Revenue Product MRP theory ? (30)
3. Discuss the impact on Labour Markets of Net Immigration? (30)
4. Discuss whether Trades Unions actually benefit Members and non Members? (30)
5. Explain reasons for the increased labour Market Flexibility? (30)
6. Discuss policies to Increase labour Market Flexibility? (20)
7. Discuss 3 policies to reduce Inequality in the UK (30)
8. Explain causes of increased relative poverty in the UK (10)
9. Discuss policies that the government can use to Increase Labour Market Participation Rates. (3)
10. Discuss the impact of an increase in income tax on labour markets (30)
Wednesday, 27 June 2018
Tuesday, 20 March 2018
Saturday, 14 October 2017
Labour Markets - Wage determination
The labour market wage determination from mattbentley34
Essay Question:
Although there has been laws against wage discrimination for many years in the UK, women's average wages are still around 20% less than men.
Explain the factors that might account for the continuing difference between male and female earnings. (15 Marks)
Assess the view that increased trade union membership is the best way to raise women's earnings. (25 Marks)
Essay Question:
Although there has been laws against wage discrimination for many years in the UK, women's average wages are still around 20% less than men.
Explain the factors that might account for the continuing difference between male and female earnings. (15 Marks)
Assess the view that increased trade union membership is the best way to raise women's earnings. (25 Marks)
Saturday, 7 October 2017
Labour Market failure, minimum wage and trade unions
This first presentation is a general comment on all aspect of market failure in the labour market. The second two look specifically at theory behind Minimum Wage and Trade Unions, how they affect the labour market and the potential advantages of them to society.
Tuesday, 26 September 2017
Saturday, 23 September 2017
Labour Markets - Do some of the newly employed have zero productivity?
Whether due to limited ability or a lack of incentive, the output of some workers taken on in the jobs boom is close to zero. And this drags the average down.
The UK jobs market is booming, as the latest ONS figures show. Unemployment is at its lowest for over 40 years. A record 32.1 million people are in employment, a rise of over 3 million since the financial crisis. Apart from in a few scattered pockets, Britain is at full employment.
Usually in such circumstances, wages would start to outpace inflation. Labour shortages would lead employers to start bidding for workers, who would themselves feel more confident about demanding pay increases.
Perhaps this is starting to happen, with the TUC voting for a campaign to raise public sector wages by 5 per cent. But a combination of immigration and a concerted government campaign to get people off benefits means that the supply of labour has risen sharply. This holds down the price of labour, the wage, in the bottom half of the labour market. Instead, full employment manifests itself in different ways.
A few anecdotes might illustrate the key points:
I recently bought a new phone, which has proved to have an intermittent fault. The Richmond branch of EE advertises both on the internet and on its doors that it opens at 9.30am. I turned up at 9.40 to find the place in darkness. I went to another EE branch, where a listless young woman informed me that she could not replace it. I asked what she could do. She replied that she could take it in for repair, but that this “would take three weeks”. I left, and she slumped back to her stupor.
Later that day, I went to see someone at a leading London university. The department receptionist asked if I had the extension number. When I said I was rather hoping he might have it, he responded that he probably did, but that it would be “hard to find”. We looked at each other in silence. Then a light bulb came on in his mind. He winked at me, and pronounced “I’ll take you up there”.
These experiences are not confined to the dynamic capital city. A few weeks ago, I visited the maths department at Durham and left my glasses behind. They offered to post them guaranteed next day delivery. I tracked the parcel on the Royal Mail website. 39 hours later, it had arrived at the Newcastle sorting centre, all of 15 miles away.
These examples of appalling service arise for two reasons. First, the very high demand for labour means that some people now in jobs are scarcely able to perform work at all. Second, many low paid workers realise they can easily get another job, so why bother making an effort in your current one?
Here is part of the answer to the so-called productivity puzzle. During the recovery from a recession, productivity, output per worker, usually rises quickly. But it has been flat.
Perhaps we need to find some of these guys to help with productivity? Click here for video
The UK jobs market is booming, as the latest ONS figures show. Unemployment is at its lowest for over 40 years. A record 32.1 million people are in employment, a rise of over 3 million since the financial crisis. Apart from in a few scattered pockets, Britain is at full employment.
Usually in such circumstances, wages would start to outpace inflation. Labour shortages would lead employers to start bidding for workers, who would themselves feel more confident about demanding pay increases.
Perhaps this is starting to happen, with the TUC voting for a campaign to raise public sector wages by 5 per cent. But a combination of immigration and a concerted government campaign to get people off benefits means that the supply of labour has risen sharply. This holds down the price of labour, the wage, in the bottom half of the labour market. Instead, full employment manifests itself in different ways.
A few anecdotes might illustrate the key points:
I recently bought a new phone, which has proved to have an intermittent fault. The Richmond branch of EE advertises both on the internet and on its doors that it opens at 9.30am. I turned up at 9.40 to find the place in darkness. I went to another EE branch, where a listless young woman informed me that she could not replace it. I asked what she could do. She replied that she could take it in for repair, but that this “would take three weeks”. I left, and she slumped back to her stupor.
Later that day, I went to see someone at a leading London university. The department receptionist asked if I had the extension number. When I said I was rather hoping he might have it, he responded that he probably did, but that it would be “hard to find”. We looked at each other in silence. Then a light bulb came on in his mind. He winked at me, and pronounced “I’ll take you up there”.
These experiences are not confined to the dynamic capital city. A few weeks ago, I visited the maths department at Durham and left my glasses behind. They offered to post them guaranteed next day delivery. I tracked the parcel on the Royal Mail website. 39 hours later, it had arrived at the Newcastle sorting centre, all of 15 miles away.
These examples of appalling service arise for two reasons. First, the very high demand for labour means that some people now in jobs are scarcely able to perform work at all. Second, many low paid workers realise they can easily get another job, so why bother making an effort in your current one?
Here is part of the answer to the so-called productivity puzzle. During the recovery from a recession, productivity, output per worker, usually rises quickly. But it has been flat.
Perhaps we need to find some of these guys to help with productivity? Click here for video
Monday, 18 September 2017
Labour Markets - An introduction
Labour Markets are a big part of A2 Economics. The following presentation covers all aspects of the syllabus.
Monday, 29 May 2017
Theme 3: Labour Markets
See below for a series of webinars discussing all issues related to labour markets.
Here is a link to all resources on labour markets.
Here is a link to all resources on labour markets.
Tuesday, 18 April 2017
All Themes: Labour markets - all you need to know
Unemployment and economic inactivity in the UK labour market are falling, but when we disaggregate the market we find that there remain persistent issues including risks of extreme poverty, labour immobility, skills shortages and the issues facing workers in vulnerable jobs perhaps facing a monopsony employer.
This short revision video looks at the problems in accurately measuring the marginal revenue product from employing an extra worker.
This short revision video looks at a numerical example of the difference between the average and marginal cost of employing extra workers when a business has to raise the average wage to expand their workforce.
Monopsony is a labour market structure in which there is a single powerful buyer of a particular type of labour. For example, the main buyer of the labour of doctors and nurses is the NHS or large employers such as Capita, G4S, Amazon and Sports Direct.
Trade Unions may use their collective bargaining power and bid for employers to pay a premium wage (or “wage mark-up”) above the normal competitive market wage. However, this might lead to an excess supply of labour and a contraction of total employment. This short revision video takes students through the basic analysis and some core evaluation arguments.
A trade union is an organised group of employees who work together to represent and protect the rights of workers, usually by using collective bargaining techniques.
This short revision video looks at the key roles of trade unions and the long term trend in union membership in the UK labour market.
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