Economics Chapter Nine Vocab

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