Define and describe a LABOR MARKET

Expert Solution

A labor market is a place where the employers and employee interact with each other. In the labor market, employers compete to hire the best, and the workers compete for the best satisfying job.

The main function of a labor market depends on the demand and supply of labor. The demand side is the firm's demand for labour and the supply is the worker's supply of labor. The supply and demand of labor in the market is influenced by changes in the bargaining power, domestic and international market dynamics, as well as factors such as immigration, the age of the population and education levels. This is one of the major components of any economy. The relationship between supply and demand influences the hours the employee works and compensation she receives in wages, salary and benefits.

There are 2 types of labour market a Tight labor market is one that has more jobs than workers, whereas a Slack labour market is one where the workers are more than the jobs actually available.

There are 4 major factors that affect the labor market, they all determine how the markets hold up and what is needed to keep the employees/ employers happy:

1. Discrimination- Discrimination can affect a labor market if they do not treat their employees with respect and fairly

2. Unions- If workers go on strike, the projects and work would be on a standstill.

3. Unemployment- If the unemployment rate is high it would affect the economy as a whole.

4. Income inequality- If there are same employees with different wages at the same level , they would likely have issues with the working of the company.

Rahul Sunny answered 1 year ago

Describe the Internal Labor Market Model, specifically define Primary Jobs and Secondary Jobs. What does this...

Describe the Internal Labor Market Model, specifically define Primary Jobs and Secondary Jobs. What does this model have to say about differences in wages and occupations between men and women?

Describe labor and other resource markets. How is the market for labor similar to and different...

Describe labor and other resource markets. How is the market for labor similar to and different from the markets for steel or other factors of production? What can a firm do to ensure a dependable supply of these resources? Look up the concept of a spillover effect and explain how unions have benefited workers who have never been a member of a union. Union membership for non-government workers has fallen dramatically over the last 30 years, yet government workers are...

Define/describe 1. the importance of non-labor income 2. marginal product of labor (and its relation to...

Define/describe 1. the importance of non-labor income 2. marginal product of labor (and its relation to wages) 3. marginal product of capital (and its relation to rents) 4. aggregate supply curve for labor 5. aggregate demand curve for labor ( and where it comes from)

As a compensation analysis for an insurance company in Hartford, Connecticut, define the relevant labor market...

As a compensation analysis for an insurance company in Hartford, Connecticut, define the relevant labor market for insurance claims adjusters and for data entry clerks. Please provide support for your answer

Define Market Structure in Economics ? Define Perfect Competition. Define Imperfect Competition. 3.) Describe the Perfect...

Define Market Structure in Economics ? Define Perfect Competition. Define Imperfect Competition. 3.) Describe the Perfect Competition Firm's Demand Curve and explain why it's that shape. For an Industry in Perfect competition, when is it possible to Enter and Exit the market?[ The Market Supply Curve is determined by What 5 Determinates? 5.) What is a Monopoly (define and explain)? The Market Supply Curve is determined by What 5 Determinates? Explain each determinate.

Define the equilibrium of a market. Describe the forces that move a market toward its equilibrium....

Define the equilibrium of a market. Describe the forces that move a market toward its equilibrium.

The labor market What is the main reason behind the increase in the employment-population ratio? Define...

The labor market What is the main reason behind the increase in the employment-population ratio? Define the rate of unemployment, give an equation for it. What conditions must hold to consider that a person is unemployed? Define the concept of job destruction. In the following cases where wages are perfectly flexible explain graphically and with intuition what will happen in the labor market: 1) It turns out that the technological boom from Silicon Valley has led firms such as Apple,...

What are the key factors that affect the wage determination in the labor market? Describe the...

What are the key factors that affect the wage determination in the labor market? Describe the medium-run equilibrium in the labor market. Discuss the naturalness of the natural rate of unemployment. Consider the Phillips Curve equation in its general form: πt = πte + (m + z) − αut. Explain the relationship between the rate of unemployment and the inflation rate when a) inflation expectations are anchored and b) inflation expectations are adaptive.

Identify some of the indicators that describe the labor market and discuss the impact of fluctuations...

Identify some of the indicators that describe the labor market and discuss the impact of fluctuations in the indicators to the labor market.

Consider the market for labor is segmented into the market for low skilled labor and the...

Consider the market for labor is segmented into the market for low skilled labor and the market for high skilled labor. If the low skilled labor market is given by the following function: labor demand: w = 35 – 0.005L; and labor supply is 4000. If the high skilled labor market is given by the following functions: labor demand: w = 400 – 2L, and the labor supply function is given by w = 160 + 1.2L. The hourly wage...

Question