Labour economics

laborlabor marketlabour marketlabor economicslabourjob marketlabor marketslabour marketslabor economistwork
Labour economics seeks to understand the functioning and dynamics of the markets for wage labour.wikipedia
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Factors of production

resourcesfactor of productionresource
It is conventionally contrasted with such other factors of production as land and capital.
There are three basic resources or factors of production: land, labor, and capital.

Human capital

human capital theoryhumancapital
There are theories which have developed a concept called human capital (referring to the skills that workers possess, not necessarily their actual work).
Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Workforce

labor forceworkerworkers
The labour force is defined as the number of people of working age, who are either employed or actively looking for work.
The workforce or labour force (labor force in American English; see spelling differences) is the labour pool in employment.

Economics

economiceconomisteconomic theory
In economics, labour is a measure of the work done by human beings.
Inputs used in the production process include such primary factors of production as labour services, capital (durable produced goods used in production, such as an existing factory), and land (including natural resources).

Market (economics)

marketmarketsglobal market
Labour economics seeks to understand the functioning and dynamics of the markets for wage labour.
Labor markets: where people sell their labour to businesses in exchange for a wage

Capital (economics)

capitalcapital flowsinvestment capital
It is conventionally contrasted with such other factors of production as land and capital.
Classical and neoclassical economics regard capital as one of the factors of production (alongside the other factors: land and labour).

Globalization

globalisationglobalizedglobal
Structural unemployment – This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers. Rapid industry changes of a technical and/or economic nature will usually increase levels of structural unemployment; for example, widespread implementation of new machinery or software will require future employees to be trained in this area before seeking employment. The process of globalization has contributed to structural changes in labour markets.
Economist Takis Fotopoulos defined "economic globalization" as the opening and deregulation of commodity, capital, and labor markets that led toward present neoliberal globalization.

Compensating differential

compensatingcompensating wage differentialsdifferential
Contrasting the labour market to other markets also reveals persistent compensating differentials among similar workers.
Wage differential is a term used in labour economics to analyze the relation between the wage rate and the unpleasantness, risk, or other undesirable attributes of a particular job.

Wage labour

wage laborlaborlabour
Labour economics seeks to understand the functioning and dynamics of the markets for wage labour. Individuals must choose how much time to allocate to leisure activities and how much to working.
These transactions usually occur in a labour market where wages or salaries are market determined.

Unemployment

unemployedunemployment ratejob creation
The unemployment level is defined as the labour force minus the number of people currently employed.
The frictions in the labour market are sometimes illustrated graphically with a Beveridge curve, a downward-sloping, convex curve that shows a correlation between the unemployment rate on one axis and the vacancy rate on the other.

Land (economics)

landland economicsland economy
It is conventionally contrasted with such other factors of production as land and capital.
In classical economics, land is considered one of the three factors of production (also sometimes called the three producer goods) along with capital, and labor.

Inflation

inflation rateprice inflationfood inflation
Natural rate of unemployment – This is the summation of frictional and structural unemployment, that excludes cyclical contributions of unemployment (e.g. recessions). It is the lowest rate of unemployment that a stable economy can expect to achieve, given that some frictional and structural unemployment is inevitable. Economists do not agree on the level of the natural rate, with estimates ranging from 1% to 5%, or on its meaning – some associate it with "non-accelerating inflation". The estimated rate varies from country to country and from time to time.
However, "inflation" may also be used to describe a rising price level within a narrower set of assets, goods or services within the economy, such as commodities (including food, fuel, metals), tangible assets (such as real estate), financial assets (such as stocks, bonds), services (such as entertainment and health care), or labor.

Microeconomics

microeconomicmicroeconomic theoryprice theory
Labour economics can generally be seen as the application of microeconomic or macroeconomic techniques to the labour market.
The cost-of-production theory of value states that the price of an object or condition is determined by the sum of the cost of the resources that went into making it. The cost can comprise any of the factors of production: labour, capital, land,entrepreneur.

Supply and demand

demandsupplylaw of supply and demand
Neoclassical economists view the labour market as similar to other markets in that the forces of supply and demand jointly determine price (in this case the wage rate) and quantity (in this case the number of people employed).
The model is commonly applied to wages, in the market for labor.

Search theory

searchsearchingsearch models
One of the major research achievements of the 1990-2010 period was the development of a framework with dynamic search, matching, and bargaining.
It has been applied in labor economics to analyze frictional unemployment resulting from job hunting by workers.

Marginal revenue productivity theory of wages

marginal productivity theorymarginal revenue product
The demand for an additional amount of labour depends on the Marginal Revenue Product (MRP) and the marginal cost (MC) of the worker.
The marginal revenue productivity theory of wages is a theory in neoclassical economics stating that wages are paid at a level equal to the marginal revenue product of labor, MRP (the value of the marginal product of labor), which is the increment to revenues caused by the increment to output produced by the last laborer employed.

Personnel economics

General
At the micro level, one sub-discipline eliciting increased attention in recent decades is analysis of internal labour markets, that is, within firms (or other organisations), studied in personnel economics from the perspective of personnel management.
It is an area of applied micro labor economics, but there are a few key distinctions.

Internal labor market

internal labor marketsinternal labour marketinternal labour markets
At the micro level, one sub-discipline eliciting increased attention in recent decades is analysis of internal labour markets, that is, within firms (or other organisations), studied in personnel economics from the perspective of personnel management.
Internal labor markets are shielded from the competition of external labor markets (ELM).

Feminist economics

feminist economistfeminist economistsfeminist
Also missing from most labour market analyses is the role of unpaid labour such as unpaid internships where workers with little or no experience are allowed to work a job without pay so that they can gain experience in a particular profession.
The critique began in microeconomics of the household and labor markets and spread to macroeconomics and international trade, ultimately extending to all areas of traditional economic analysis.

Personnel selection

Frictional unemployment – This reflects the fact that it takes time for people to find and settle into new jobs. Technological advancement often reduces frictional unemployment; for example, internet search engines have reduced the cost and time associated with locating employment or personnel selection.
Labour economics

Skilled worker

skilled workerstalentskilled
Skilled worker
A skilled worker is any worker who has special skill, training, knowledge, and (usually acquired) ability in their work.

Temporary work

temptemporarygig economy
Another solution, foreshadowed by the rise of temporary workers in Japan and the firing of many of these workers in response to the financial crisis of 2008, is more flexible job- contracts and -terms that encourage employees to work less than full-time by partially compensating for the loss of hours, relying on workers to adapt their working time in response to job requirements and economic conditions instead of the employer trying to determine how much work is needed to complete a given task and overestimating.
This transformation has been characterized by an economic restructuring that emphasized flexibility within spaces of work, labor markets, employment relationships, wages and benefits.

Perfect competition

perfectly competitiveimperfect marketperfectly competitive market
Models that assume perfect competition in the labour market, as discussed below, conclude that workers earn their marginal product of labour.
For the former, absence of perfect competition in labour markets, e.g. due to the existence of trade unions, impedes the smooth working of competition, which if left free to operate would cause a decrease of wages as long as there were unemployment, and would finally ensure the full employment of labour: labour unemployment is due to absence of perfect competition in labour markets.

Leisure

leisure timefree timespare time
Individuals must choose how much time to allocate to leisure activities and how much to working.
Labour economics

Family economics

familyeconomics of the familyeconomics of households
However, over the past 25 years an increasing literature, usually designated as the economics of the family, has sought to study within household decision making, including joint labour supply, fertility, child raising, as well as other areas of what is generally referred to as home production.
Early economists were mostly interested in how much individuals contribute to social production, which translated into how much labor they supply in the labor market.