Chapter 9- Labor

Vocabulary

1. labor force- all nonmilitary people who are employed or unemployed

2. learning effect- the theory that education increases the productivity and results in
higher wages

3. screening effect- the theory that the completion of college indicates to employers
that a job applicant is intelligent and hard working

4. contingent labor- a temporary or part time job

5. How does being unemployed differ from not being a part of the labor force?

6. What is the minimum age requirement to be considered a part of the labor force?

7. Which groups are considered outside the labor force?

In the following examples, would you hire permanent employees or contingent
workers?

8. Pool and garden shop in North Dakota:

9. Architectural firm:

10. Laundromat:

11. Tax preparation service:

12. productivity- value of output

13. equilibrium wage- the wage rate that produces neither an excess supply of
workers nor an excess demand for workers in the labor market

14. unskilled labor- labor that requires no specialized skills, education, or training

15. semi skilled labor- labor that requires minimal specialized skills and education

16. professional labor- labor that requires advanced skills and education

17. glass ceiling- an unofficial, invisible barrier that prevents women and minorities
from advancing in businesses dominated by white men

18. labor union- an organization of workers that tries to improve working conditions,
wages, and benefits for its members
 19. featherbedding- the practice of negotiating labor contracts that keep unnecessary
workers on a company’s payroll

What are the three primary reasons that women’s wages are lower than men?
20. Women’s work
21. Human capital
22. Women’s career paths

23. strike- an organized work stoppage intended to force an employer to address

union demands

24. right to work law- a measure that bans mandatory union membership

25. blue collar worker- someone who works in an industrial job, often in
manufacturing, and who receives wages

26. white collar worker- someone in a professional or clerical job who usually earns a
salary

27. collective bargaining- the process in which union and company representatives
meet to negotiate a new labor contract

28. mediation- a settlement technique in which a neutral mediator meets with each
side to try to find a solution that both sides will accept

29. arbitration- a settlement technique in which a third party reviews the case and
imposes a decision that is legally binding for both sides