Microeconomics

Leeds, vonAllmen and Schiming

Chapter 15, Labor Markets

1. Demand for labor in the short run

   1. Derived demand

   2. Labor productivity - Law of diminishing marginal returns

   3. Value of the marginal product of labor

   4. Marginal revenue product

2. Market demand for labor

3. Changes in Market demand for labor

   1. Product price

   2. Marginal product of labor

4. Labor Supply in the Short Run

   1. Work time versus leisure time

5. Market supply of labor

6. Market Supply changes

   1. Increased female labor force particpation

   2. Immigration

7. Equilibrium in the labor market

   1. Competitive goods market - competitive labor market

   2. Imperfect competition in goods market - competitive labor market

   3. Competitive goods market - imperfect competition in labor market

   4. Imperfect competition in goods market - imperfect competition in labor market

8. Explaining differences in earnings

   1. Compensating wage differentials

   2. Winner-take-all markets

   3. Discrimination

      1. Employer

      2. Co-workers

      3. Consumers

   4. Human Capital and the Labor Market

      1. Specific and general human capital - who pays

   5. Unions

      1. Goals of Unions

      2. Types of Unions

         1. Craft Unions

         2. Industrial Unions

      3. Union Participation Rates

      4. Decline in Union Membership