17 Work and the Labor Market

• We earn our living by working.
• We get paid in labor markets when we supply labor.

• Work is a part of our lives.
• Our labor laws and the school years prepare us for work.
• Many of you are taking this econom implications of the labor ics course because you've been told that it will help prepare you for a job.

• This course is investment in human capital, which is skills embodied in workers through experience, education, and on-the-job training.
• Once you get out of school, work in the marketplace will become familiar to you, unless you're sitting on a hefty trust fund or marry someone who is.

• A third of your waking hours will be spent on your job.
• It will define you.
• Defining ourselves by our work means that work is more than income.
• It's a part of our culture.
• We lose part of our identity if we lose our jobs.

• It's not possible for me to discuss all of the social, political, cultural, and economic dimensions of work and labor in one chapter, but it is important to point them out in order to put my discussion of labor markets in perspective.

• The amount of land, labor, and capital, and income from these factors is rent and the distribution of that rent, which are sometimes classified as and structured plays an important role in the amount of land, labor, and capital, and income from these factors is rent and the distribution of that We agree that people should focus on labor because it is the most important source of income and there is less agreement about rent.

• We can understand the nature of labor markets if we consider how social and political forces interact with economic forces.

• Wages would be determined by supply and demand if the invisible hand were the only force operating.
• It shouldn't surprise you that my discussion of the invisible hand and the labor market is organized around the concepts of supply and demand.

• The labor supply choice facing an individual can be seen as a choice between legal and non market activities.

• The incentive cooking, cleaning, gardening, and black market trading is what economists focus on.
• Legal market activities include effect when considering an individual's choice of whether or not to take a paid job or work from home.

• Many considerations are involved in individuals' choices of how much to work and what kind of job to work.
• The value of supplying one's time to legal market activities is related to the value of supplying one's time to non market activities.

• The higher the wage, the more labor is supplied.

• The figure in the margin shows the relationship between the wage rate and the quantity of labor supplied.

• As the wage rate increases, the quantity of labor supplied increases.

• The higher the wage, the higher the cost.
• You have less time to devote to non market work if you work one hour more.

• You can make $10 per hour by working.
• If you decide to work two hours less, you'll have less money to spend, but two hours more available for other activities.
• An hour of leisure has a higher opportunity cost when the wage goes up.
• When the cost of leisure goes up, you buy less of it, meaning you work more.

• The labor market and individuals' decisions to work more, or less, hours are the incentives that are represented by the market supply curve.
• The incentive effect of higher wages is influenced by the institutional constraints of the labor market, which require many people to work a fixed number of hours if they work at all.
• The labor force participation rate is affected by the number of people employed or looking for work as a percentage of people able to work.
• When wages rise, retired work ers may want to go back to work, and teenagers may want to find part-time jobs.

• The quantity of labor supplied goes up.

• The income effect explains the difference.
• People with higher incomes can afford more leisure.

• It doesn't make sense that people work less since they are richer than they were 100 years ago.
• It's surprising that they work eight hours a day, rather than the two or so hours a day that would give people the same income they had a century ago.

• There is an explanation for why people haven't reduced their hours of work more.
• Conversation was an art a century ago.

• People could use their time to talk.
• All educated people have a skill in letter writing and cooking dinner.
• If people were satisfied with spending time with their families instead of traveling, skiing, or golfing, they would be able to work only four or five hours a day.
• That isn't the case.

• Fast food, a home video, and analysis of current events have replaced leisurely dinners, conversations, and witty letters.
• There are many gadgets and products designed to save time.
• One of the reasons people work hard in the United States is so that they can play.

• The fast pace of modern society has led a number of people to question whether we are better off working hard to play hard.
• Economists don't try to answer the question of whether people are worse off because they don't try to argue that people are worse off.

• It's difficult to prove that it's true.

• Because labor income is such an important component of you decide to work more--as the economic decision rule most people's total income, when wages change other says--but the effect of the higher wage is overwhelmed by things often do not stay equal, and at times the effect can If you earn $10 an hour, you can work less.

• When economists demand for your services goes up, you give them names.
• $40 an hour is the amount of money that a worker can make by making a decision to work.
• The price of leisure has gone up, so you might decide to work at 40 an hour, even if you're a worker substitute.
• The decision to only work six hours a day is enough; the rest of the work will be reduced when your pay goes up.

• The stitution effect and wage increase can cause a person to answer no, because other things, specifically your work less, but that possibility does not violate the economic income--do not remain equal.
• The substitution effect is only referred to in the higher wage makes decision rule.

• Labor supply issues and market incentives are important in other non market activities.
• Selling illegal drugs is an alternative to taking a legal job.

• An 18-year-old street kid has only two options, he can either work at a minimum wage job or deal drugs illegally.

• Most low-level drug dealers don't make a lot of money, but dealing drugs gives a few the chance to advance and earn more.
• Middle-class individuals who have good jobs can be adversely affected by an arrest.
• Poor street kids with little chance of getting a good job don't care about an arrest.

• The choice is very important for them.
• The entrepreneurial types--the risk takers--might have become the business leaders of the future.
• Had I been in their position, what decision would I have made?
• I think I know the answer.

• The labor market effects of blocking certain drugs can lead to high income.
• Some economists support the legalization of illegal drugs because of the incentive effects that prohibition has on the choices of jobs for poor teenagers.

• It is after-tax income that determines how much you work.

• If you don't work, you give up after-tax income.
• The government ignores what you would have paid in taxes if you had worked.
• When the government raises your marginal tax rate, your incentive to work falls.
• High marginal tax rates can make it hard for people to work and earn income.

• The U.S. government reduced marginal income tax rates in the 1980s to reduce the negative incentive effects of high taxes.
• The highest federal marginal income tax rate was 70 percent in the 1950s and 1960s.
• The problem of providing incentives for people to work is a problem that European countries with high marginal tax rates are struggling with.

• Negative incentive effects on individuals' work effort are still a problem despite the reduction of the marginal tax rate.
• Earned income is tied to the amount of government redistribution people receive.
• Benefits from these programs go down when your earned income goes up.

• If you're getting welfare and you decide to take a $10-an-hour job, that's a good example.
• Income taxes and Social Security taxes reduce the amount of money you make from your job by 20 percent.
• The Welfare Department will reduce your welfare benefits by 50 cents for every dollar you make.
• The marginal tax rate on a $10-an-hour job isn't 20 percent, it's 60 percent.
• You have increased your net income by only $4 by working an hour.
• The cost of getting to and from work, the cost of getting new clothes to wear to work, and the cost of child care are all related to the net gain in income.
• Get paid in cash so you have no work, and there's an enormous take home at such rates.

• Sometimes the negative incentive effect can be even more indirect.
• College scholarships can be given on the basis of need.
• A family that earns more gets less in scholarship aid, as the amount by which the scholarship is reduced as a family's income increases acts as a marginal tax on individuals' income.
• The irony of being needy is what it is.

• The elasticity of the individual's labor supply curve is what determines how the various incentives affect the amount of labor.

• The elasticity of the market supply curve is determined by the elasticity of individuals entering and leaving the labor force.
• The opportunity cost of these is determined by the opportunity cost of working.

• There is a type of market being discussed.

• The type of market being discussed affects the elasticity of supply.

• People are entering and leaving the labor market.

• If only one firm raises its wage, it will attract workers away from other firms; if all the firms in town raise their wages, it must come from increases in labor force participation, increases in hours worked per person, or immi gration.

• Existing workers prefer inelastic labor supplies because they will raise their wage more.
• Increasing demand for labor doesn't require large wage increases, which is why employers prefer elastic supplies.
• News reports about U.S. immigration laws show these preferences.
• Hotels and restaurants don't like immigration laws.
• New immigrants or workers with low wage expectations are more likely to fill jobs such as janitor, hotel house keeper, and busperson.

• The elasticity of labor supply is important to economists and they spend a lot of time estimating it.
• The best estimates of labor elasticity to market activities are between 0.1 and 1.1 for heads of households.
• A wage increase of 10 percent will increase the quantity of labor supplied by 1 percent for heads of households and 11 percent for secondary workers in households.
• The hours of work are flexible.
• Most heads of households are employed so they can't change their hours.
• Secondary workers in households are not employed, and the higher elasticity reflects new secondary workers entering the labor market.

• International limitations on the flow of people and labor play a role in elasticities of labor supply.
• Many people from low-income countries would like to move to the United States and Europe to find higher wages.
• Many people come into the United States and Europe illegally because they can't always meet legal immigration restrictions.
• About 1 million legal and illegal immigrants enter the United States each year.
• U.S. citizens and legal immigrants are willing to take jobs that illegal immigrants are unwilling to take.
• In jobs that cannot be easily policed, the actual supply of labor is more elastic than the measured supply.

• The higher the wage, the lower the amount of labor demanded.

• The graph in the margin shows the relationship between the wage rate and the quantity of labor demanded.
• The quantity of labor demanded rises as the wage rate falls.

• The demand for the product or service they supply is called demand labor.
• You have the ability to do something, you offer to do it at a certain price, and you see who calls.

• What jobs you take and the quantity of labor you charge.

• The higher the wage, the lower the supply.
• We can analyze self-employed individuals directly from the amount of labor demanded.

• The demand for labor isn't as direct when a person is not self-employed.
• Consumers demand products from firms, in turn firms demand labor and other factors of production.
• It's derived from consumers' demand for the factors of production by firms, which goods the firm sells.
• You can't think of demand for a factor of production based on consumers' demands.

• Consumers' demands are translated into a demand for factors of production.

• The elasticity of the demand for labor depends on a number of factors.

• The less elastic the demand, the less marginal productivity falls.

• I would suggest that at derived demand for labor, you name at least two factors that your answer wasn't automatically "the competitive firm", because its demand curve is influence the elasticity of a firm's perfectly elastic and hence more elastic than a monopolist's.

• Both discussions are good reviews for each other.

• Land, labor, capital, and entrepreneurship are some of the traditional factors of production.
• The economists talk about labor and entrepreneurship when they talk about the labor market.
• It is a type of work.

• There is an hour of concern, oversight responsibility, and creativity that distinguishes between labor and entrepreneurship.

• It's one reason why pay can vary between workers doing the same job.
• One of the important deci sions a firm makes is what type of labor to hire.

• The firm's derived demand is developed in the appendix.
• The basic law of demand is that the lower the price, the higher the quantity demanded.

• There will be pressure on the equilibrium wage to change if there is a shift in the demand curve for labor.
• Let's look at some examples.

• A machine that could do the job increases the quantity of labor production.
• Pressure on the wage to rise would be put on by shifting the demand for this factor out to the right.

• Alternatively, say a new technology develops that requires skills different from those currently being used, for instance, requiring knowing how to use a computer rather than knowing how to use a slide rule.
• The demand for people to know how to use slide rules will decrease.

• An example is if an industry becomes more monopolistic.
• Since the industry would hire fewer of them, the answer is that it would decrease the demand for workers.
• Wages would fall if the demand for workers shifted.

• Demand for the firm's good increases would be what would happen to a firm's Finally.
• If the product became demand for labor, the firm's demand for labor will increase as well.

• There is no unambiguous answer to this question.
• The economists know that the simple reasoning used by lay people when they argue that new technology will decrease the demand for labor is wrong.

• The demand for labor has not decreased despite the fact that technology has increased.

• Luddite reasoning doesn't take into account the fact that technological change increases total output and employment.
• Increased demand for machines increases the demand for labor, which is a problem with Luddite reasoning.

• There is a decrease in the demand for certain skills.
• The computer has reduced demand for calligraphers.
• The types of labor demanded are different because of new technology.
• You will be hurt by technological change if you have the type of labor that is technologically obsolete.
• technological change has led to an increase in total output and a need for even more laborers to produce that output, which hasn't reduced the overall demand for labor.
• The composition of labor demand has changed as a result of technological change.

• The change in the type of labor demanded and the relative pay can be significant, as we have seen in the last few decades with a decline in manufacturing labor.
• The nature of physical labor done by humans was changed by the Industrial Revolution.
• Humans shovel the dirt that the backhoe left behind, as machines do the heavy lifting.
• The process of technological change is ongoing, and we are seeing an increase in the use of robots to do repetitive tasks that blue-collar workers used to do.
• Demand for general manufacturing labor is likely to decline.
• The decrease has been accompanied by an increase in demand for service industry labor, as well as demand for labor associated with designing, building, and repairingrobots and computers, or taking in activities that fill up people's free time because all physical and mental work can be done more efficiently by

• The Industrial Revolution did to physical jobs what the information revolution is doing to mental jobs.
• The revolution of the 20th and 21st century is replacing mental labor with machines that do the same things as physical labor.

• Knowledge of how to add, multiply, and spell used to be a highly valued skill used in millions of jobs.
• Since the advent of the desktop calculator in the 1960s, pocket calculator in the 1970s, and desktop computers in the 1980s, they have become less important, because calculators and automated spell checkers can do much of the work.

• The speed and acceleration of those changes are changing.
• The information revolution is extending beyond the routine mental jobs and is now affecting what we previously considered nonroutine mental labor involving high levels of creativity, which were thought to have been uniquely human.
• We thought only humans could do things like write books, diagnose disease, and create music and art.
• The sub branch of the information revolution might be called the algorithm revolution.

• Most of the time, the tasks that assist humans are the ones that are devoted to.

• It's not clear if the jobs of the future will be good jobs or pay wages that society finds acceptable.
• Most of the jobs of the future will be mental scut jobs, cleaning up around the heavy men tal work that is being done by the algorithm.
• When compared to the people who design and control the algorithms, these jobs will have relatively low pay.
• Income could become less equal than it is.
• Designers will likely make a lot of money.
• People with jobs that protect the wealth of the rich will do well.

• There was a momentous event on May 23, 2017: Google's in males 35-40.
• The best human Go player in the world was defeated by AlphaGo.
• Go is a game that is very easy to play.
• Humans were thought to be uniquely adapted, but small issues are not worth designing an algorithm for.

• The problem and computing power are discussed in the text.
• Humans can win at Go if there aren't enough jobs.
• The mental work that will be jobs for everyone is based on past experience.
• People do, only quicker and better.

• Will the jobs that people want at puters can also do art, music, and emo,AlphaGo pay levels that people, and society as a tional counseling better?
• Formation revolution is creating a few highly paid jobs and making them obsolete, which is what humans have traditionally done.
• A large number of relatively lowpaid and not especially mic component of the information revolution will require intellectually fulfilling jobs.

• The evolution is likely to go beyond economics.
• They are just as social as economic issues and will be more psychological as a result.
• Economics is designed to replace humans in certain aspects of life.
• What economics can do is let the names of the programs be known.
• Society know that forces are pushing in that direction, and general physicians will be replaced by Algorithm Doc1, and life coaches specializing degree, and suggest policies that might alleviate them to some degree.

• General mental labor will likely become poorly compensated in the coming decades, just as general manual labor became poorly compensated in the United States during the 1980s.
• Technology presents policy concerns even if it doesn't reduce the number of jobs if one knows that one's job could be done better by an algorithm.

• When we're talking about the demand for labor by the country as a whole--an issue that is fundamentally impor tant to many of the policy issues being discussed today--we have to consider the overall international competitiveness.
• The relative wage of labor in a country is related to the relative wage of labor in other countries.

• Wages are different among countries.
• Workers in the manufacturing industry in the United States, Germany, and Mexico earned an average of about 40 dollars an hour in the last year.

• The reasons are complicated, but include (1) differences and (2) transportation costs, which are important in a firm's decision on producing in the country to which you're selling transportation costs down.

• Production will fall if they don't.

• A company moving production to another country because other companies have already moved or expanded there is called a situation where a company chooses to move.
• It costs a lot of money to explore a country's potential as a possible host country because a company can't consider all places.

• Japanese businesses know what to expect when opening a plant in the United States, but they don't know what to expect in other countries.
• The United States and other countries have Japanese businesses.
• Other, possibly equally good, countries are not named besides as potential sites for business.
• The focal point countries grow in size.

• The relative cost differential that firms calculate as they decide where to place production units is a reflection of the outsourcing that is currently occurring.
• Large setup costs made U.S. production cost-effective in many industries.
• As firms have spent the setup costs to establish production facilities abroad, that cost differential relevant to their decisions is increasing, which means that U.S.-based production will continue to experience strong pressure to move offshore in the coming decade.
• Unless offset by new jobs in other industries, the resulting increase in demand for foreign-based workers and decrease in demand for U.S.-based workers will likely put upward pressure on foreign wages and keep downward pressure on U.S. wages.

• Supply and demand forces do not fully determine wages.
• Real-world labor markets are filled with examples of individuals or firms that influence wages, but they do not fully resist these supply and demand pressures through organizations such as labor unions.

• Supply/demand analysis is a useful framework for considering resistance.

• Say that you're helping the firm's workers raise their wages.

• Wage Determination workers' wages high) is to force the firm to pay an above-equilibrium wage.

• Jobs must be rationed.
• Whether you get a job with that firm depends on where you come from and the color of your skin.

• If U.S. immigration laws were liberalized, what would happen?

• The jobs must be rationed.

• The supply and demand framework is relevant only if the change in the supply of labor doesn't affect the demand for labor.

• The final result of a change is often less clear-cut.
• It's important to remember the assumptions behind the model you're using.
• Qualifications are often added to the "right" answer.

• Labor markets can also be imperfectly competitive.

• In a company town, a single firm is the only employer.
• A monopolist takes into account the fact that if it sells more it will lower the market price, while a monopsonist takes into account the fact that it will raise the market prices if it buys more.
• It buys less and pays less than a market with an equal number of buyers.

• A union that allows work ers to operate as if there were only a single seller is possible.
• The union could be a monopoly.
• There are three types of mar ket imperfections.

• When there is only one buyer of labor services, it makes sense for that buyer to hire another worker in order to increase the wage rate for all workers.

• When a union exists, it has an incentive to act as a monopolist, limiting labor supply to increase its members' wages.
• It needs the power to restrict both supply and union membership.
• A union's tendency to act like a monopolist and to move to an equilibrium is similar to the monopsonist case, except for one important difference.
• The benefits of restricting supply accrue to the union members, not to the firm as in the monop sonist case.

• A bilateral monopoly is a market in which a monopsonist faces a union with monopoly power.

• The wage and equilibrium quantity will be dependent on the two sides' negotiating skills and other non economic forces.

• There are some real-world characteristics of the U.S. labor markets.

• English teachers are paid close to what economics teachers are paid even though the quantity of English teachers supplied significantly exceeds the quantity of English teachers demanded.

• Women earn 85 cents for every $1 men earn.

• Some jobs are done by members of a single ethnic group.
• Many construction workers on high-rise buildings are Mohawk people.
• They can keep their balance on high, open building frames.

• Firms pay more than market wages.

• Even when demand for their products decreases, firms often don't lay off workers.

• There are two types of jobs, dead-end jobs and jobs with potential for career advancement.
• A person can't switch to a job with potential after being in a dead-end job.

• Blacks have a higher unemployment rate than whites.

• Supply/demand analysis isn't enough to explain these phenomena.

• Market, political, and social forces explain real-world labor markets.
• To broaden the analysis is necessary.

• There are legal and social limitations on the self-interest-seeking activities of firms and individuals.
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• People have an idea of what's fair.
• It's often strongly held, but that view isn't always consis tent among individuals.
• People aren't machines is the first lesson taught in a human resources course.
• They have feelings and emotions.
• If they feel good about a job, if they feel part of a team, and if they feel they're being taken advantage of, they can be disruptive.

• It is easy to monitor effort on some assembly-line jobs, and in the past individuals were often treated like machines.
• They were ignored.
• If workers couldn't keep up the pace, they were fired.

• Most modern jobs require workers to make decisions about how to do a task.
• Managers are aware of the emotional state of their workers and how that affects their decisions.
• Most firms will try to keep their workers happy even if they don't care about profit.
• It's in their interest to do so.
• It might mean paying workers more than the market wage, not laying them off even if layoffs would make sense economically, providing day care so the workers aren't worried about their children, or keeping wage differentials small to limit internal rivalry.

• Even if the actions cost the firm in the short run, they can make long-run economic sense.

• The government passes laws to implement social views of fairness.
• Minimum wage laws, comparable worth laws, and anti discrimination laws are examples.

• Land profits and interest were part of the economy as it evolved into a market economy.
• Wages, discussed in the text, are appropriated by individuals, and these individuals determined by economic factors, with strong influences by political and social land and could receive rent for allowing other individuals forces, which often Supply and demand can show how competitive a market would be.

• Payments initial set of property rights are the same for nonwage income.

• There are forces of supply and demand that deter the underlying property rights.
• Academic for Western societies is what we have emphasized.
• The contractual legal system and the property rights that supply and demand are not the end of the story.
• Markets operate on supply and demand.
• You're not going to see some given an institutional structure that includes property body going out and introducing a new alternative set of rights, property rights in which the ownership of property is trans and the contractual legal system.
• The government can regulate the economy of the society.
• If you change at the margin, you change the distribution of income.

• There will be no property rights.

• The contractual legal economic thinking takes property rights as they are given.

• If you believe that property rights are being affected by technological change, you will not be able to understand unchanging property rights.

• You can change your rights, and how they change plays a big role in favor markets but object to the underlying property rights.

• Property rights determine how the benefits of fights over property rights are spread among the population.

• Distributional fights have been going on for an analysis to look at the underlying legal and long time.
• Much of the land was used for supply and demand in the past.
• It belonged to everyone, or at least everyone who is modifying the economic theory of used it.
• A communally held resource, it was common land.

• The problem with implementing these laws is that they don't know what com parable is.
• Compensation has many dimensions and it is not clear which are the relevant ones, or whether the political system will focus on the relevant ones.

• Social and political issues are often the determining factors in setting pay according to economists who favor comparable worth laws.
• Firms often have their own comparable worth systems built into their structure.

• Pay is often determined by seniority, not productivity.
• Firms' pay-setting institutions can be biased against women and minorities.
• Pay structure within firms is not determined by supply and demand forces.
• Comparable worth laws are not necessarily less compatible with supply and demand forces than are current pay-setting institutions.

• There are other government agencies that establish labor laws.
• State and local governments do the same thing.
• A living wage is a wage that would allow one worker to work 40 hours a week to support a family of four at the poverty level.
• The laws are similar to the minimum wage.

• Women are paid less than men, and blacks are often directed into lower-paying jobs, as a result of discrimination in all walks of life.
• The first thing the Faculty Hiring Bias lem does is to determine how people are treated differently and how much of the difference is caused by discrimination.
• There is discrimination against women.

• Women get around 85% of the pay that men argue that discrimination should be received.
• In the 1970s it was about 60 percent.
• The pay gap was eliminated.

• The economist's job is to figure out how much of this is statistically significant and what the nature of discrimination is.

• More than half of the pay difference can be explained by causes other than discrimination, according to analyzing the data.
• That still leaves a large difference that can be attributed to discrimination.

• It's important to distinguish three types of discrimination.
• The three types of discrimination are based on individual characteristics.
• Discrimination based on individual mance, and discrimination based on correctly perceived statistical characteristics of the characteristics that will affect job performance.

• Discrimination is based on performance or perceived performance.
• Demand-side discrimina perceived statistical characteristics are based on relevant individual characteristics.
• Firms make decisions for the group.

• If restaurants discriminate against applicants with characteristics that don't affect job performance or sourpuss personality, they might not hire them.
• A firm might hire more young sales.

• Discrimination becomes more visible if that characteristic is an identifying factor for a group of individuals.

• Discrimination based on group characteristics is the second type of demand-side discrimination.
• Firms make employment decisions about individuals because they are members of a group who have certain characteristics that affect job performance.
• A firm may wrongly think that young people are less likely to stay on a job than older people.

• Evidence suggests that some of the drop in earnings is due to research, and that economists are studying it from different angles.
• To the extent that it is the result of sexism.
• Discrimination, what type of discrimina not men, end up being the primary caregivers within the family.

• Some of that may be a matter of personal preference for men and women in the country.
• A significant portion of wage ing for both men and women is reward for caring for children, and people are willing to give up income to do so.
• The women who grew up in not with demand-side discrimination were studied.
• The pay gap isn't more than the father experienced because companies discriminate against a drop in income upon becoming a woman.
• Women who grew up in marriages take most of the households where home responsibilities for caring for the children in the family are located.

• The entire ential between men and women before the women had differential was not accounted for by such preferences.

• When the One can see the institutional supply-side discrimination women had children, their wages fell behind both women.
• After Australia's Labor government offered a parental dren, two and a half years passed before a child was born.
• After having children, women were less likely to work and fathers were less likely to work.
• 76 percent of men in the United States take less than men who have children.
• 96 percent of men's pay did not fall behind when they had a baby and they were back at work after two weeks.
• If this is the work fewer hours, and their pay remained equal to cause of the pay gap, there are two policy options.
• We can accept the pay differential as a way of blaming the kids for the differences.
• The earnings fall was not temporary.

• Women with children have different preferences for people.
• The earnings of children in Sweden never recovered after they grew up.
• In Sweden, men are required to take at least a three-month leave after having a child or they will be required to do so in Danes.

• Discrimination based on irrelevant individual characteristics is the third type of demand-side discrimination.
• This discrimination is based either on individual character istics that don't affect job performance or on wrongly perceived statistical charac teristics of groups.
• Older people may be more productive than younger people, even if the supervisor doesn't like working with them.

• Discrimination based on irrelevant individual characteristics is the easiest type to eliminate.
• Discrimination that doesn't affect job performance is costly to a firm.

• These people will be hired by competing firms and they will be in a better position.
• Market forces will work to eliminate this type of discrimination.

• People with learning disabilities make good employees.

• They have lower turnover rates and follow procedures that are better than Mcdonald's hires.
• McDonald's helped change some negative stereotypes about people with disabilities.

• Market forces and political forces are working together.

• Political forces to eliminate discrimination will be working against market forces to keep discrimination, so not discriminating can be costly to the firm.

• The firm will have an incentive to use subterfuges if it saves money.
• The firm will appear to be complying with the law even when it isn't.
• A firm that doesn't hire an older person is called an exam ple.

• The structure of the job makes it difficult or impossible for certain groups of individuals to succeed.
• The institutional structure is where institutional dis crimination comes from.
• Consider universities and colleges.
• During one's 20s and 30s, one must devote an enormous amount of effort to pursue a career in the academic market.
• The years when many women have major family responsibilities presents an obstacle for women to succeed.
• These obstacles for women to advance their careers could be reduced if academic institutions were different.

• Many companies require peak time commitment when women are also facing peak family timeibilities.
• Women face significant institu tional discrimination.

• Whether institutional discrimination is embedded in the firm's structure or not.

• Women tend to be with their partners more than men in personal relationships according to sociologists.
• Women in two-parent relationships generally do more work around the house and take a greater responsibility for child rearing than men do.

• The members of my class are asked if they expect their personal relationships to be equal.
• 80 percent of the women expect a fully equal relationship; 20 percent expect their partner's career to come first.

• The sociologists have found that institutional factors explain a portion of the lower pay that women receive but that other forms of workplace discrimination also explain a portion.

• There is a question of whether prejudice should be allowed to affect hiring decisions.
• Our society has made it illegal for employers to discriminate on the basis of race, reli gion, sex, age, disability, or national origin.
• The ethical belief in equal opportunity is the reason society has made it illegal.

• Let's look at how labor markets developed after we consider how non economic forces can influence labor.

• Labor markets developed in the 1700s and 1800s.
• The political and social rules of that time allowed the invisible hand to push wage rates down.
• Workweeks were long and the working conditions were bad.
• Laborers began to look at other ways of influencing their wages.
• Political power can be used to place legal restrictions on employers.
• The second way to organize was to unionize.

• Let's look at each in a different way.

• Laws play an important role in limiting what can and can't be done in the labor markets.

• Extra pay must be given to employees who work more than the normal number of hours.
• One break every four hours is the law for the number and length of workers' breaks.

• Child labor laws require that people be at least 16 years old to be hired.

• Laws regulate the safety and health conditions under which a person can work.

• Employers have to show cause to fire a worker.
• Sexual harassment is not allowed in the workplace.

• The functioning of the labor market is dependent on these laws.

• The labor market is explained in this chapter.
• I will try to answer that question in the last section.

• Table 17-1 contains useful statistics about the labor market.
• Some of them might affect you.
• Consider the relative pay of jobs requiring a college degree compared to jobs requiring only a high school degree.

• Jobs that require a col ege degree pay more than jobs that only have a high school degree.
• The income gap between the two groups has increased.
• The answer to the question of whether it's worthwhile to stay in college for another couple of years and get a degree is probably yes.

• Consider the salaries of PhDs compared to the salaries of MBAs.
• Even though one can earn a PhD in many subjects besides philosophy, it is still considered a PhD if one has gone to graduate school after college for a number of years.
• PhDs' starting salaries are lower than those of masters of business administration and professionals with advanced degrees.
• PhDs may derive a "psychic income" from their work in addition to the amount of money they earn, as a result of their lower pay.

• The figures are rough estimates based on data from various regions.

• Whether you like what you're doing and the life that job provides is more important than the wage.

• My suggestion is to finish college if you enjoy it.

• If you enjoy learning, graduate school is 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 is 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 is 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 888-739-5110 Pick a job that you enjoy, as long as it pays you enough to live on.
• If you want to work in a field in which the supply of labor is limited or the demand for labor is increasing, choose a job in that field.
• The trends are likely to lead to higher wages.
• If you're doing something you enjoy, you should get paid as much as possible.

• Jobs in which the supply will be limited are those in which social or political forces have placed restrictions on entry.
• Try to find a job that will allow you to use your special ability.
• If you are looking for a job in which entry is restricted, be aware that you may need per sonal connections to get one of them, since such jobs pay higher wages.

• Most of you know that your choice of jobs is one of the most important decisions you'll make in your life.
• I'm sure you feel the pressure.
• You should also know that a job isn't always a good one.

• The U.S. labor market has a lot of flexibility.
• People change jobs six or seven times.
• If the first job you take isn't perfect, don't despair; a poor choice can be fixed.

• The discussion about the labor market is over.
• Most people are defined by their job.
• Economic forces play a central role in the labor market.
• The labor market is not governed by economic forces alone because work is so important to us all.
• Labor markets and economic forces are affected by cultural, political, and social forces.
• Think of people fighting against those forces with political and social pressures to see that economic forces work for them.

• Incentives are important in labor supply.
• A monopsonist hires fewer workers.

• A bilateral monopoly is a market in which there is a single seller and a single buyer.
• The wage and number type of market being discussed, as well as the elasticity of workers hired in a bilateral monopoly depend on individuals' supply curves and the relative strength of the union and entering and leaving the labor market.

• Firms are aware of workers' well-being and will demand goods and services from consumers.
• It is possible to pay efficiency wages to keep workers happy and productive.

• The elasticity of demand for the firm's good work depends on the mandate comparable pay for comparable.

• Discrimination based on irrelevant indi is the easiest to eliminate.
• The demand for labor is shifted by the others.
• Both have incentives.

• Labor laws have evolved and will continue to increase in demand.

• The social and political forces are more active.

The reasons for the rise in child labor are population related, and what do you do about increases and poverty?

• They predicted what would happen to economists.

• According to a recent study, the average male CEO of law is male.

• Laws that restrict companies from hiring based on 13 might be difficult to eliminate.

• One could only perform in a concert hall in the past.
• According to a study by economists.
• What is the impact on the number of women?

• If this were the reason for fewer women bidding.

• There is a hospital in the town of Oberlin, Ohio.

• Comparable worth laws require employers to pay the same wage scale to workers who do comparable work as they do to workers who have comparable training.

• Show your answer graphically.

• Eighty cents of every dollar spent at retail stores is used to pay teenagers less than the minimum wage.

• America is spending money at Walmart.

• The law's effects are analyzed by Professors Michael a.

• Questions from Alternative Perspectives 1.

• Table 17-1 provides data about starting salaries for professors, and it shows that PhD anti discrimination laws should be abolished.

Why should a Christian economist care?

• Colin Camerer is an economist with the California 3.
• Some economists argue against need-based Institute of Technology because they work as an implicit tax on decide when to finish work for the day by setting parents' salaries and thus discourage saving for college.

• If the tax rate is 20 percent, parents will stop working.

• 5 percent of parents' assets will be deducted.

• The behavior of b can be explained by prospect theory.

If not all the teachers' students were required to take men of equal rank and experience receive higher the test, how would the program treat students average pay?

• The economic reality of the beauty myth was discussed in econo 6.

• There are four reasons why women earn less than men.

• More than half of the United member's agricultural workers do.

• Unscrupulous immigrants are states.

• If gender-related salary data for individuals at your jobs, while others argue that without them, the jobs college are available, determine whether women or that they take will be left unfilled.

• Answers to Margin Questions 1.
• One would expect that if 6.
• The wage of my part-time job rises, the quantity of labor costs, trade restrictions, and social institutions all increase.
• The relative demand for labor in one country might be compared to another country.

• If the increase in labor supply leads to an increase in labor supply, I will study demand for products in general, the increase in labor less if the wage of my part-time job increases.

• The opportunity cost is related to the relative price of demand.

• Firms might pay workers more money if tax rates go up.

• The pro to work harder is the irony of a need-based program.

• Discrimination from becoming needy is not argued for in economic theory.

• Some factors affect the elasticity of a positive.
• Discrimination is a problem.
• If one's demand for labor includes the elasticity of demand for normative views, as well as the relative importance of labor in the eliminated economic theory, it might be useful to do production process.

• The productivity of the firm is affected by an increase in labor.

• The firm's demand for laborers would shift to be more competitive.

• The issues of derived demand additional worker are considered in this appendix.
• The number is determined by looking in more detail.
• Although it focuses on the change in the total product due to this person's demand for labor, you should be aware of the formal anal work.
• The firm's total product in the chapter is quite general and carries over to the output if the firm hires more workers.
• Firms are moving from 30 to 31 workers.

• Let's start by looking at the firm's assumption of fixed capital, because more and more workers are decision to hire.

• It is determined by dividing the answer.
• A profit-maximizing firm hires some workers.
• If it thinks there's money to be made by doing so, Column 5 shows it.

• The firm won't hire the person unless there is.

• Let's assume that the wage is $9 and that the firm is able to sell 30 workers for $6 an hour.
• It has $2 each if it hires another worker.
• The firm can pay up to $12 per 31 workers, workers' marginal revenue product of $12 hour, and still expect to make a profit.
• If a key exceeds their wage of $9, the firm can increase profits by doing so, but how much additional product can be added by doing so?
• A competitive revenue the firm gets from increasing workers from firm can increase its profit by hiring another worker as 30 to 31 is $12 and the additional cost the firm incurs is long as the value of the worker's marginal product.

• The firm has hired more workers so it is higher than her wage.

• The ginal product of workers declines if the firm hires more workers.
• Figure A17-1(a) is an example.
• The graph in Figure A17-1(b) shows the marginal revenue number of workers, all of whom are assumed to be decreasing from 34 to 33 workers.
• The total output of those workers is shown in column 2.

• Any firm's demand curve for labor is the marginal revenue product.
• The revenue the firm gets from having an additional worker is determined by this curve.
• The marginal product decreases to $4 when the firm increases from 34 to 35 workers.

• The first worker hired is the one who decreases output.
• It can't be because it increases the assumption that the workers are the same.
• The average product of the remaining workers.

• When the marginal product of any other worker is equal to the wage of the worker, the firm has no incentive to change workers.
• The number of employees is falling.

• When the firm is hiring 32 workers, either hiring another 30 workers is less than the marginal product of any one of them or they will decrease profits.

• Only 25 workers are working.
• When the Decreasing from 32 to 31 workers loses $10 in revenue, other inputs are constant, hiring an additional worker but increasing from 32 to 33 workers gains $8 in revenue lowers the marginal product not only of the last worker but costs $9 in wages.

• As more workers are hired, they will have to share machines or tools with other workers because the demand curve for labor is downward.
• If you share tools, you start to run product falls.
• This might make you think that the last worker hired is less productive than the previous one.
• When a new worker is hired, the marginal product of workers goes down.
• The marginal all other factors of production are held constant is a physical product of labor.

• It is not clear that workers' productivity is self-evident.
• People think that firms interests will fall as output increases.

• This principle tells us that a firm is not hiring another worker if they do so.

• When it comes to deciding the firm is interested in total profit, not productivity, interests are in conflict.
• As how to divide up the total revenues among the owners is dependent on whether or not the firm hires an extra worker.
• The firm's total profit increases.
• It would be crazy to not hire another worker at the bargaining table, even if it lowers the marginal product prevent imports that might compete with the firm's prod, because it would be crazy to see a firm and its workers fighting each profit-maximizing firm.

• When union marginal productivities can be determined relatively workers at a solar energy firm helped fight for an exten easily.
• They need to know how much government subsidies are for solar energy.

• The solar with the person doing the guessing and estimating was included in their contract.
• The union workers' wages social interaction plays a role in determining wages.
• The manager's estimate of the eration between workers and firms has led to some marginal productivity being higher than if you treat firms and workers as a single entity.
• These economists have high marginal productivity.
• It isn't helpful to separate out factor markets because of difficulties estimating marginal productivi and goods markets.
• Bargaining power ties, actual pay can often differ substantially from marginal models, which combine factor and goods markets, are the productivities.

• The cost of labor should be modeled as if it is determined at the same time as the price and factors affecting demand profitability.

• The structure of a firm is an important factor in determining the wage and demand for labor.

• The firms that make up indus 3.
• The marginal revenue products are calculated differently by a change in the other factors of production.

• Regardless of how many units it sells, the price of a competitive firm's output remains the same.
• Let's consider each principle in turn.

• The first principle is that the price of the firm's product should be compared to the price of the worker's product.
• For a competitive firm, the demand for a product leads to an increase in demand Marginal revenue product of a worker is for the laborers who produce that product.

• The price of a monopolist's product decreases as more demand for labor, consider what would happen if workers units are sold, since the monopolist faces a downward rather than independent profit-maximizing owners con sloping demand curve.
• The firms were trolled by the monopolist.
• You saw it before that.
• It focuses on marginal revenue because worker is hired and other inputs are constant.
• As it hires more labor and produces more out cal product, it falls.
• The price it charges for its product will fall.
• There was a reduction in existing workers' wages.
• The effect on existing workers' wages is not taken into account by the monopolist.

• Marginal revenue product of a worker is costs down.

• If they believe that hiring more workers will lower their price, a monopolistic industry will always hire fewer workers than their competitors, and they have an incentive to hire more workers.
• A monopolistic industry will always produce profit-maximizing firm because a worker will hire fewer workers than a competitive monopoly.

• To ensure that you understand the principle, let's con United States, there aren't many worker-controlled firms, but a number of firms include existing sider the example in Table A17-1, a table of prices, workers' welfare in their decision processes.
• Wages, marginal revenues, marginal physical products, with the growth of the team concept, in which workers and marginal revenue products for a firm in a competitive are seen as part of a team with managers, existing work industry and a monopolistic industry.

• There are 6 workers.
• A written contract with existing workers that restricts the petitive industry is something other firms have an implicit understanding of.

• The top five companies on Glassdoor are equivalent to the monopolistic industry.

• To sell the addi 3 is taken into account.

• The nature of firms to be seen as good employers makes it easier for them to translate demand for products into jobs in the future.

• Equal structures of the labor market must be understood by first understanding the institutional and legal production divided by the price of that factor.

• The firm interacts with the social and market forces if this cost minimization condition is not met.
• The multi could hire more of the input with the higher marginal tiered wage contracts created social unease within the product relative to price, and less of other inputs, and pro workforce, and within eight years, when automakers were duce the same amount of output at a lower cost.

• Let's look at a numerical example.

• $4 is the third principle that determines the derived demand for machines.
• You're asked to advise the firm.

• 10 existing workers have had their output increased.
• Let's say a firm buys while costs stay the same.
• As long as there are more machines, the ginal products will be divided by the prices of the various inputs with which to work.
• The cost per unit of output for the firm is lower if you recommend increases to the workers.

• Labor shift can be used in conjunction with others if there are changes in these factors.

• We don't know what the final effect is on demand people's lives and into the economic system.

• Labor markets function under a lot of rules.
• The condition of isocost/isoquant mine pay and hiring decisions are only part of the analysis in the appendix to Chapter 12.

• Use the information in Figure A17-1 to answer the 8.
• Your manager has three sets of proposals for the new production process.
• Each process has three inputs.
• How many land, labor, and capital are there if the market wage is $7 an hour.

How would labor and capital be affected if the price of the product fell to $1?

• If firms were controlled by workers, they would likely labor and spend money on capital.

• In the 1980s and 1990s farmers paid $5 for land, $7 for labor, and $6 for square bales, which they used to hire students on summer break.

What is the likely outcome?

• A firm gets money for being competitive.
• The average product is 4 and the marginal product is 3.

• A firm with a $2 price for its goods can be found in the following table.

• Explain the relationship between rent seeking and property rights.

• Discuss the economic tensions caused by high income and wealth inequalities.

• Discuss the problems of redistributing income.

• Assuming she worked 70 hours per week, that's more than $26,373 per hour.

• The average family doctor makes $190,000 per year and $3,654 per week.
• Assuming she works 70 hours per week (she's conscientious, makes house calls, and spends time with her hospitalized patients), that's $52 per hour.

• Joe Smith is a cashier in a fast-food restaurant.
• He works a lot of overtime to make enough money for his family to be able to eat.
• He makes over $50,000 per year by working 70 hours per week.

• Hama Manout, a peasant in the Central African Republic, makes $400 a year.
• Assuming he works 70 hours per week, that's a little over 10 cents per hour.

• Such issues are addressed in this chapter.

• The issues addressed in these questions are important in policy debates.
• The income distribution in the United States has changed a lot in the last 40 years.
• The wealth and control of real assets of formerly middle-income people have grown considerably since they moved into the upper-income levels.
• Many lower-income people's income has remained stagnant.
• Income distribution issues are being brought to the forefront of modern policy debates.

• Income distribution can be looked at in many different ways.
• The Executive Pay tions among social classes in capitalist societies DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch Landowners, workers, and owners of businesses were all in separate groups.

• Time has changed that.
• The New York Stock Exchange has 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 888-349-8884 Landowners receive a small amount of total income.
• Companies are run by managers who are workers.
• The social lines have changed.

• It simply means that we are interested in who gets what.
• We don't focus on classification of income by source anymore.
• Income groups are looked at how total income is distributed.

How much of total income is given to older groups?

• Figure 18-1 shows the distribution of income in the United States.
• It shows how much the richest 20 percent of people get and how much the poorer 20 percent get.
• The richest 20 percent of the population might get 40 percent of the income.
• The Lorenz curve would be a diagonal line if income were equally distributed.

• The top 20 percent of Americans received more than half of the total income.
• The income of the top 20 percent was more than that of the bottom 20 percent.

• The axes start at zero and end at 100 percent since the figure shows cumulative percentages.

• The Lorenz curve below the diagonal line divides the income evenly.
• The Lorenz curves are below the diagonal because the income in the real world is always distributed equally.

• The bottom 20 percent of families in the United States received less than 3% of their income.
• The income percentage of the bottom 20 percent and the income percentage of the next 20 percent are needed to find what the bottom 40 percent received.
• It gives us a total of 11.3 percent, which is 3.1 plus 8.2 percent from column 2 of Figure 18-1(a)

• Lorenz curves can be used to compare income distribution between countries.
• From 1929 to 1970 the share distribution of income became equal.
• The income of the bottom fifth of families increased.
• The income of the top fifth increased from 1970 to 1970.
• That was a continuation of the trend that had begun in the previous year.

• The trend stopped in the 70s.
• Income distribution became less equal as you can see.
• The income of the bottom fifth of families fell while the income of the top fifth rose.

• Welfare programs, unemployment insurance, Social Security, and progressive taxation were instituted by the U.S. government between the 1930s and the 1970s.

• When wage increases didn't keep up with price increases, the real income of the poor fell.
• The wages of unskilled and medium-skilled workers in the United States have been squeezed by the influx of immigrants who are willing to work for low wages as a result of globalization.

• Wages have fluctuated with the business cycle since then, but the trend toward greater inequality continued until about 2017.

• Business cycles, government policy, and competitive pressures are just some of the factors that affect the distribution of income over time.
• Many families have low income in their early years, high income in their middle years, and then low income again in their retirement years.
• Income in any one year would not be reflected by the Lorenz curve.

• The Lorenz curve will change when the percentages of the groups change.
• As the baby-boom generation retires and no longer works, their collective income will fall.
• The Lorenz curve will be affected by the decline in overall income relative to the number of working families.

• The effect of technology is different than an example would show.
• Before the development of radio, TV, records, tapes, CDs, MP3 players, and online, on-demand music stores, the number of people who could listen to a performer was limited by how many people could fit in a concert hall.
• Lots of local singers could make a decent wage without recordings or broadcasting.
• Superstars were born when the number of people who could listen to a performance was nearly unlimited.
• The superstars were destined to sing for low wages at weddings, bar mitzvah parties, and church recitals, while the almost superstars were destined to become multimillionaires.
• There were similar changes in sports and other activities.
• The point is that technology can affect income distribution.

• As global competition continues to grow, and as telecommunications increase income inequality, technology has played a role in Murphy's argument.

• The poor are the focus of the government's concern with income distribution.
• It's not easy to define poverty.

• A person with an income of less than one-fifth of the average income could be defined as living in poverty.
• The proportion of people classified as poor would always be the same if that concept were chosen.

• Poverty is defined by the U.S.

• A family is in poverty if its income is less than three times the average government and less than three times the average family's minimum food expenditures.

• 4 eggs, 1 1/2 pounds of meat, and 3 pounds of Agriculture are included in the minimum weekly food budget.

• The poverty line is $25,283 for a family of four.

• The official poverty measure shows that the number of people in poverty decreased in the 1960s and then increased in the 1970s.
• Almost 40 million Americans lived below the poverty threshold in savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay savesay

• The minimum food budget used to determine the poverty line has not been adjusted because of rising standards of living.

• In 1969 the amount needed to buy food was adjusted by the rate of inflation rather than by the rise in the price of the originally selected foods.

• Since food prices have risen less than the general price level, the poverty threshold has gone up more than it would have had food prices been used.
• The poverty rate would be lower had a purely absolute measure been used.

• Those who favor a relative measure of poverty argue that our current poverty is too low.
• They say that food is too high and too low in proportion to a family's total line.

• Housing, utilities, health care, and expenses related to work are some of the things that house holds spend more on.
• A poverty threshold that takes different expenses into account raises the poverty threshold and raises the poverty rate from 12 percent to 21 percent, with millions more people on the poverty roll.

• The current measure of poverty is too high for those who favor an absolute measure.
• In-kind transfers such as food stamps and housing assistance are not included in the U.S. poverty figures.
• The current poverty measure doesn't take into account under reporting of income or savings.

• The official number of people in poverty decreases to about 60 percent if we make adjustments for in-kind transfers and under reporting of income.
• The number of people in poverty would fall to one-seventh if the relative price of food were taken into account.

• Like most economic statistics, poverty should be used with care.

• Society suffers when some of its people are in poverty, just as the entire family suffers when one member doesn't have enough to eat.

• Poverty and pleasure from knowing that other people are not poor.

• The Gini coefficients for a number of income inequalities is the second measure economists use to talk about the issue.

• The highest Gini coefficients can be found in Algeria.
• All Gini coefficients Bangladesh must be between 0 and 1.
• The closer the income distribution is to being equal, the lower the Gini coefficients.
• The Gini Canada.321 was used for the United States.

• The cost of poverty is that it increases incentives for crime.
• People with little money have little to lose.
• As people's incomes increase, they have more to lose by committing crimes, and therefore fewer crimes are committed.
• As the economy grew, the crime rate declined in the 1990s and early 2000s.
• When the economy went into a recession in 2008, crime rates were expected to go up.
• They fell and brought into question the importance of poverty for crime.

• While crime rates didn't go up, general unhappiness with the income distribution did.
• Increasing concern about the lack of fairness is giving way to a sense of fairness that used to exist.

• Their complaints were often about a lack of opportunity for many and a sense of entitlement for a few.
• Our society was founded on the belief that if one worked hard, they would be rewarded with more income and better job prospects than their parents had.
• The belief that high unemment and the pressure of globalization hold down wages of jobs in the tradable sectors is being tested.

• People who worked hard could escape poverty, and people who didn't work hard would end up in poverty.
• The United States was seen as a meritocracy due to the fact that hard work and ability were key to advancement of both eco nomically and socially.
• The United States had significant upward and downward mobility in the 1960s and 1970s.
• Recent studies have questioned this view.

• According to a recent study, the United States has less mobility than Europe, and this is due to the decline in income mobility.
• They ranked the countries on a scale of 0 to 1, with 0 meaning perfect mobility and 1 meaning no mobility.
• The United States scored a.54, suggesting that it had less social mobility than did Britain and Sweden.
• Children born to families in the bottom fifth of the U.S. income distribution were less likely to move up.
• It is harder for people in the United States to surpass their parents on the income scale than it was a generation ago, and it is even harder for people in Europe to move up the income scale.

• We look at conditions within a single country when considering income distribution.

• There are other ways to look at money.

• Income inequality in the United States is compared to other countries.
• Income is distributed among countries.
• Income may be distributed differently among countries.

• The United States has more income inequality than many developed countries.

• Sweden's tax system is more progressive than the United States'.
• The top marginal tax rate in Sweden is 60 percent, compared to 40 percent in the United States.
• It isn't surprising that Sweden has less income inequality.

• When we consider the picture of world income, it becomes even more skewed than the picture we see in the United States.

• A Lorenz curve of world income would show more inequality than a Lorenz curve for a specific country.
• Income inequality is huge around the world.
• A wealthy person's income in a poor country like Bangladesh would be considered a minimum level of income in the United States.

• If you want to see a better picture of income distribution problems, you need to consider the total amount of income in different countries.
• The distribution of income or the absolute level of income is more important than the differences of income.

• Because of space limitations, my focus will be on income, but I want to Wealth is the value of assets individuals mention wealth.

• A farmer with a net worth of $5 million is wealthier than an investment banker with a net worth of $225,000.

• It's a stream asset.

• A farmer with a $5 million net worth might have an income of $20,000 a year, while an investment banker with $1 million might have an income of $300,000 a year.
• The farmer with $5 million of assets is wealthier than the investment banker.

• The Monetary Fund was 60,000.

• The United States has more wealth than income.

• Cumulative percentage of families/households 400 Microeconomics distributed than income and that the bottom 40 percent of the U.S. population has close to zero wealth.

• The Lorenz curves don't give you a sense of how much wealth it takes to become a billionaires.

• You can get a better sense from the following numbers.
• Bill Gates, who founded Microsoft and became the richest person in the United States, had a net worth of $90 billion.
• Six of the wealthiest people in the United States were people who founded platform businesses.

• Most of us don't have a chance of becoming one of the top 5 percent of wealthholders in the United States, which requires a total wealth of at least $2.4 million.
• People used to want to be a millionaire.
• The ultimate goal of the millionaire's club is not to be a billionaire in the 2000s.
• The millionaire's club is exclusive.

• The club is constantly changing and people don't always stay there.
• A number of families who were in the club earlier are no longer in it.

• The world stock market collapsed in 2008 and many billionaires lost a lot of money.
• Some of the people and families might only be multimillionaires.

• The share distribution of inequality is just one of many dimensions of income and wealth that can be taken.
• The distribution of income was once considered important.

• Today's focus is on the distribution of income based on race, ethnic background and other factors.

• Table 18-2 shows an idea of the distribution of income.

• Some econo mists argue that a new professional/non professional class distinction is occurring in the United States because of income differences by type of job.
• White people and black people have vastly different incomes.

• The distribution of income by wages, profits, and rent was the focus of early economists.
• Rent, profit, and wages were received by landowners, capitalists, and workers.
• An important part of economists' analyses of the economy and policy was the tension among these classes.

• Even though class divisions by income source have become blurred, other types of classes have taken their place.
• There is a kind of upper classes in the United States.
• This isn't saying that such classes should exist, but that they are.

• It is possible to divide the U.S. population into two classes.

• Income source no longer determines class divisions.
• Upper-class people don't necessarily get their income from rent and profits.
• Most of the income of the CEOs of major companies is paid for their services.
• We have upper-class people who derive their income from wages and lower-class people who derive their meager income from profits, usually in the form of pensions, which depend on profits from the investment of pension funds in stocks and bonds.
• People who become rich earn interest and profits on their wealth as well as income from wages.

• The growth in the size of the middle class has made the most difference in the class structure in the United States compared to other countries.
• The class structure used to be seen as a pyramid by economists.
• From a base composed of a large lower class, the pyramid moved upward through a medium-size middle class to a peak occupied by the upper class.
• The middle class is the most developed in the United States.

• The portrayal of dia mond geometrics has become less appropriate in the last 30 years.
• Some in the middle class have done well and moved into the upper middle class, while others have done poorly and expanded the number at the bottom.

• Globalization pushed your wage down or left you out of work if your job was in a tradable sector such as manufacturing.

• The class structure in the United States is more like a pentagon than a pyramid.

• Those in nontradable sectors such as government workers or semi skilled service workers, whose jobs could not be easily replaced with immigrant workers, remained in the middle class.
• The lower class is being expanded to include many formerly in the middle class.
• Those in the lower class are less likely to move up the ladder into the middle class and those in the upper class are less likely to move down the ladder into the middle class.

• The middle class is still large, but a group of people who are just get ing along are always on the edge of poverty.
• The bottom group includes a disproportionate percentage of blacks and has been expanded by a significant number of immigrants.
• The bottom group has been expanded by the loss of middle class jobs.
• The difference is significant.
• The median wealth of white households is 20 times that of black and Hispanic.
• The typical Hispanic and black household has $6,000 in wealth, compared to $100,000 for the white family.
• The lower class and their children can't enter the middle class because of the decline of social mobility.

• The increase in the size of the middle class in developed countries has blurred the divide between capitalists and workers.
• The distributional fight was mostly between workers and capital in early capitalist society.

• Union workers are pitted against nonunion workers, while government workers are pitted against manufacturing workers.
• The old are against the young, women are against men, and blacks are against Hispanics and Asians.
• Class warfare is sometimes called class warfare.
• Hispanics and blacks have faced more job losses in the past few years than whites.
• Blacks and Hispanics were more optimistic about their futures than whites.

• People's acceptance of the U.S. economic system is based on what people think is fair and what they don't think is fair.

• We now turn to that question.
• Judgements about the distribution of income are based on the values the analyst applies to the situation.

• Income distribution can be justified depending on one's values.
• Friedrich Nietzsche, the 19th-century German philosopher, argued that society's goal should be to support its best and brightest.
• Lesser individuals should work for the well-being of these supermen.
• According to a 20th century philosopher, a high level of income inequality is necessary to sustain the arts, beauty, education, and civilization.
• He and others say that a world of equal income would be a world without beauty.
• Even if we don't own beautiful, expensive homes, or aren't devoted opera fans, these philosophers argue that our lives are improved because some people do own such homes.
• The lives of everyone are enriched by the creation of diversity.

• Philosophers disagree strongly.
• They argue that the goal of equality is ridiculous.
• For many people, the Q-5 is self-evident, that greater inherent value of equality is not open to question.

• John Rawls, a Harvard University professor who believed that equality is desirable and that society's goal should be to maximize the welfare of the least well-off, agreed that to meet that goal some inequal ity is necessary.
• If you make the least well-off worse off than they otherwise would have been, then you should not pursue equality any further.
• Everyone would get $10,000 per year under one policy.
• The least well-off person gets $12,000 per year, while everyone else gets $40,000.
• The second policy is better than the first because it involves more inequality, according to Rawls.

• Economists don't care about justifying the distribution of income.
• Explanation of the effects that policies will have on the distribution of income is limited by economists in their objective role.

• Because all real-world economic policies have distribution effects, you have to make certain judgements about income distribution in order to judge economic policies.
• There is a brief discussion of income distribution and fairness.

• Equality is seen as fair by the U.S. population.
• Most people, including me, share that view.
• Equality of income is not related to people's view of fairness.
• If you divide the income between John and Fred, you will get $50,000 a year.

• Fred gets a lot of money.

• Think for a second.

• The idea of policies that achieve higher in order to increase income has been argued against by theoreticians.
• The goal of policy analy has not always been to make it unavoidable.
• He believes that using income as a measure of welfare nomic policy is not the best approach and suggests replacing it with luxuries.
• Only policies that increased basic with a measure.
• The goal of eco goods was good for Sen, but the welfare implications of policies that increase luxuries were more problematic.

• The 1930s marked a major change in how society achieved certain things.
• Capabili policy was conceived for Sen. Economics began focusing much ties are best measured by basic indicators such as life more on the utility of all goods, downplaying the benefits of luxuries and infant mortality rates.
• The goal of economic policy is to lead good and happy lives.
• Regardless of how the income was divided, Sen's work is contro income.
• The goal of division of goods into necessities and luxuries should always be kept in mind, and we should not simply accept the goal as being in the purview of positive policy.

• I'm hoping that you don't have enough information to make a decision.

• There is more information about fairness.
• John gets $50,000 for holding down often difficult to say what is fair and three jobs, while Fred gets $12,000 for sitting around doing nothing.
• At this point, what isn't?

• Most of us would change our minds again.
• People don't argue that Fred deserves more just because John works more.

• If we discover that Fred is an invalid 2, how about that?
• People's needs are different.

• People's efforts are different.

• You should have grasped my point by now.
• A person's income is only one of many dimensions that people consider important in making value judgments about fairness.

• When people talk about equality of income, they often mean they believe in equality of opportunity for people with good genes.

• The inequality of income is fair if equal opportunity of equals leads to it.
• There's a lot of latitude for debate on what constitutes equal opportunity of equals.

• Needs, desires, and abilities are not the same in the real world.
• You have to answer that question before you can judge an economic policy because you have to decide whether the policy's effect on income is fair.

• If society is to meet its ideal of fairness, some redistribution of income from the rich to the poor is necessary.

• We need to consider what programs exist and what their negative side effects are.
• The side effects can subvert the intention of the pro gram so that less money is available for redistribution and less money is available for inequality.

• A tax may cause people to work less.

• There is a decrease in measured incentive effect when people try to avoid taxes.

• People may make themselves look needy if they are given more money.

• All economists think that people will change their behavior in response to Q-7.

• Evidence doesn't resolve the question of the size of incentive effects.
• Some economists think that there should be little taxation for redistribution.
• They argue that when the rich do well, the spillover benefits to the poor are greater than the proceeds the poor would get from redistribution.
• The growth in capitalist economies was made possible by entrepreneurs according to supporters of this view.
• Income in society grew because entrepreneurs invested in new technology.
• Entrepreneurs paid taxes.
• The poor were far off from any redistribution due to the benefits of entrepreneurial action spilling over to them.
• The fact that some entrepreneurs became rich is irrelevant because their actions made society better off.

• There should be significant taxation for redistribu tion according to other economists.
• They see the goal of equality over the incentive effects.

• If our values lead us to the conclusion that the poor deserve more income, we could institute policies that would get more.
• Reality doesn't always work that way.

• Politics, not value judgments, play a central role in determining taxes.
• The group that can deliver the most votes will choose the lawmaker who will be in charge of determining tax policies that benefit that group at the expense of groups with fewer votes.

• On the surface, the democratic system of one person/one vote would seem to favor the poor, but it doesn't.

• The growth of technological growth is not stimulated by economists.
• It's very difficult if patents give income redistribution.
• People don't like anyone taking their income away because they have earned it, and they don't want anyone to take it away.
• A dog with a bone is created by the U.S. patent and copyright system.

• If patent and copyright terms were distributed, a policy that is designed to affect the structure shorter, so that discoveries, and discover of society that underlies the distribution of income rather than efficient means of production, quickly moved into than trying to adjust the distribution of income after.

• Licensing and restrictions institutional structure creates a more equal distri on entry into different types of work.
• Many professions bution of income, so that income flows to all are more equal place limitations on who is allowed to work in that profession from the start.
• The policy results in a more equal sion that goes far beyond what is needed for public safety.

• The final distribution is designed to be more equal because of the limitations.
• I give two examples of distribution policy because I want to pay those already in the field.

• The structure of intellectual able to do the work but who are not allowed to do so is the first example.
• The United States grants monopoly rights for long pe equally distributed without any need to redistribute time to people who design new technologies by income.

• Policies designed to increase equality by changing the incentives to advance technology are not easy to implement, but it is likely that holders of patents are the ones who actually do the innovation.

• The answer is complex.

• Many of the poor don't vote because they think one vote won't make a difference.
• Poor people's total voting strength is reduced.

• The poor aren't seen as a solid voting bloc by most politicians.

• The poor can't deliver votes to politicians.
• The poor people who do vote cast their votes with other issues in mind.

• An anti-income-redistribution candidate might have a strong view on abortion, but it is the abortion view that decides their vote.

• Financing is a fourth reason.
• Most of the financing comes from the rich.
• The money is used to promote the idea that voting for a person who supports the rich is in the best interests of the poor.

• People are influenced by that kind of publicity.

• Some of their arguments are correct.
• A trained economist must study the issues for a long time to find out which arguments make sense.

• Basic Income policies have worked in the real world.

• There are two direct methods and one indirect method to redistribute income.
• The indirect method involves changing and protecting programs.

• Let's look at direct methods first.

• The U.S. federal government gets money from a variety of taxes.
• The personal income tax, the corporate income tax, and the Social Security tax are the three largest sources of revenue.

• Income taxes, sales taxes, and property taxes make up the revenue of state and local governments.
• Some states have higher rates than others.

• Income from the rich to the poor is redistributed.
• It could be 25 percent of every dollar earned.

• Income distribution is neutral.
• Income is redistributed from poor to rich.

• A security tax is a proportional tax.

• The federal personal income tax was made progressive in the early 1940s, with a top tax rate of 90 percent on the highest incomes.
• After World War II, the income tax system was amended to provide for an initial rate of 15 percent and a top rate of 28 percent.

• The 1986 reforms eliminated many of the loopholes in the U.S. Tax Code, which did not affect the actual progressivity of the personal income tax.
• Some loopholes allowed rich people to reduce their reported incomes and pay less taxes on their lower incomes.
• The top per sonal income tax rate is 37 percent.

• The personal income tax is progressive while the Social Security tax is proportional.
• All individuals pay the same tax rate on wage income up to a cap of $128,400.
• The Medicare portion of Social Security has no cap on the amount to which it is applied, so no Social Security tax is due above that income cap.
• The Social Security tax becomes regressive when the income cap is reached, as higher-income individuals pay a lower percentage of their total income in Social Security taxes than do lower-income individuals.

• Income taxes are progressive.

• All people pay the same tax rate on what they spend, which is proportional.

• Property taxes are taxes paid on the value of people's property, usually real estate, but sometimes also personal property like cars.
• The property tax is progressive because people with higher incomes tend to have more property.

• The conclusion that most researchers come to is that little income redistribution takes place on the tax side when all the paid taxes by individuals to all levels of governments are combined.
• The tax system is proportional because the progressive taxes are offset by the regressive taxes.
• The tax rates individuals pay are roughly the same.

• Taxation proved to be an effective means of redistributing income.
• The government redistributes income.

• The federal government's expenditures contribute to redistribution.

• The amount of an individual's Social Security retirement, dis ability, or survivors' monthly cash benefits depends on a very com plex formula, which is skewed in favor of lower-income workers.

• The program doesn't pay benefits to the amount paid in.
• Many people will get more than they paid in, some will get a great deal, and others will get nothing.
• The program has succeeded in keeping elderly people out of poverty.
• Social Security benefits have helped workers' survivors and people with disabilities.

• The security system only works for a retirement who also receives Medicare payments.
• Total benefits come system.

• State assistance to poor people when emergencies aren't taken care of by other programs.

• The majority of payments go to needy families with dependent children since they are usually so poor that they meet the eligibility requirements for the Supplemental Nutrition Assistance Program.

• The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 replaced Aid to Families with Dependent Children with USDA TANF.
• There are provisions that distinguish it from earlier programs.
• It establishes a lifetime limit of no more than 60 months of benefits.
• One provision of the law requires welfare recipients to take a job within two years if they want to be directed to work.

• The law allows states to determine benefits and eligibility.
• These changes raise a lot of questions about job training and child care.

• Significant medical care assistance is provided by the government.
• Almost 90 percent of people insured through online insurance markets receive some government assistance.
• Medicaid and the Children's Health Insurance Program cover 74 million people.

• Eligibility for SSI payments is based on need, unlike Social Source: Medicare.gov Security benefits, which are administered through the Social Security offices.
• Unlike Social Security, the recipients do not pay for the program.
• To be eligible, people must have very low incomes and almost no resources except a home, if they are fortunate enough to own a wedding ring and an automobile.
• $60 billion is paid in SSI benefits each year.

• It is limited financial assistance to people who are out of work through no fault of their own and have worked in a covered occupation for a long time before they became unemployed.

• Unemployment benefits can only be received for six months in a year, and the amount of the benefit is usually less than the amount the person earned.

• A person can't live on unemployment benefits if they quit their job.
• People receiving unemployment benefits are expected to look for work.
• Unemployment payments for lower income workers are more similar to their working wage than for higher income workers, but there is no income eligibility test.

• $30 billion is paid in unemployment benefits each year, but this amount varies with the economy.

• Congress passed the Personal Responsi were successful in moving people off the welfare rolls.

• The act reduced the number of people required to work after two of them on welfare by over 80 percent, in addition to reducing the years on assistance and the amount of time spent on welfare from over eight to under four years.
• Reducing the unemployment rate among single mothers was part of the act.

• The biggest reduction in welfare to work was in the late 1990s and early 2000s, when the economy was booming and the number of welfare recipients was low.
• Their welfare benefits were reduced after 2008.

• The act extended funding to the working poor, for Advocates, it provided funding for child care to help mothers get off welfare and into the workforce, and extended Medicaid to include the law, which has been a success.
• Proponents say that any first year of work.
• For every dollar safety net, people lost 40 cents of benefits because the implicit tax on success was reduced to 40 percent.

• Federal and state governments offer many different programs to improve housing.
• Many of these programs are designed to benefit low-income persons, but there are also programs for moderate income persons and lower income persons.

• The Department of Housing and Urban Development has been criticized for mismanagement.

• Hundreds of millions of dollars that could have helped the poor went instead to developers of housing and other projects.
• Federal funding for housing was reduced because of these problems.

• Roughly 40 billion dollars is allocated to housing programs each year.

• After including the effect of both taxes and government programs on the redistribution through its expenditure programs, the after-transfer income is closer to being equally distributed.

• The amount of income earned by the society has been reduced because of the incentive effects of collecting and distributing the money.
• The debate about whether the gain in equality of income is worth the cost in reduction of total income is likely to continue indefinitely.

• Intellectual property rights are an example.

• The distribution of income has a modest impact on taxes and transfer programs.

• The data doesn't sum to 100 due to rounding.

• The distribution of income is determined by the structured property rights.

• If strict private property rights are given for, say, a design for a computer, any user other than the designer herself will determine the final product.
• The designer who gets the legal right to the design becomes very rich.

• The point of the above example is not that property rights in such ideas shouldn't be.
• The point is that decisions on property rights have enormous fairness.

• After we have answered the question of whether the initial property rights distribution is fair, we can answer the question of whether income redistribution is fair.

• The Lorenz curve is a measure of the distribution of income in a country.
• The Lorenz curve is from the diagonal and the more gender it is.

• There is a question of fairness.
• The official poverty measure is an absolute measure of a program's fairness for themselves.

It is a relative measure because it is adjusted

• The U.S. tax system is roughly the same as in other countries, but it is less effective as a means than in some countries.

• Government spending programs are more effective than income inequality in a country.

• Wealth is distributed differently than income.

• Draw a Lorenz curve for each 11.

• The country with the most equal distribution has 12.

• Can you tell if it's d by looking at the three Lorenz curves?
• 35 percent is above $50,000.

• Social mobility in the United States is compared to 13 other countries.

Is the Lorenz curve more or less income level for the world?

What is the median income of women compared to men?

• Questions from Alternative Perspectives 1.
• The top 20 percent of Americans had b.
• Rent, utilities, taxes, auto, medical, and everything else leaves this family 49.7% of their income before taxes and transfers.
• If you earn $200, the government will take $75 from 4.3 percent.

How much do taxes and transfers cost?

What would that transfer do to your incentive?

• Would the effect be different if Israel kept God's commandments.
• Jesus says it is easier for a camel to go 5.
• Welfare-to-work programs have been the focus of antipoverty programs in the United States since the mid 1990s.

• What policies would be needed in the U.S.

• The poverty level for a family of four was $25,283.

How can public policy be used to increase the number of jobs?

• A class distinction of 6 is argued for by some economists.
• What effect does that have on workers?

• There are many lies and statistics.

• They don't take into account in-kind benefits such as amount of income when they argue that two individuals should get the same.

They don't consider regional cost-of-living differences, so how would you apply the conditions to your views?

Is it appropriate for society?

• A. Amalrik has written about either good or bad.

• The idea of justice might be considered a positive by income redistribution.

• There are many poor people in the United States.

• They don't see the income distribution system as fair because they don't do that.

• Answers to Margin Questions 1.
• The cumulative 4 is what you put when drawing a Lorenz curve.
• The fight between workers and capitalists in early capitalist society was based on percentage of income on the vertical axis.
• The distributional fight is more varied in the modern capitalist society.

• The U.S. definition of poverty is an absolute measure, but whites and males against females.

• It is not true that greater equality of income is included in the definition.

• The United States has a higher income distribution.
• Most people would prefer a more equal distribution of income than Brazil, but less than Sweden and Japan.

• It is difficult to think of what is fair.
• It depends on what degree people are opposite, just as its people's needs, people's wants, to what degree people are preferable.
• Tax incentives are deserving and other factors.
• There are no effects that must be considered.

• Many divide the pie equally in the U.S. Social Security system.

• One can't assume that other things are still benefits.

• The distribution of initial property rights has an effect on the behavior of individuals and the distribution of income.
• The intent of the program will be changed by those with the property rights.
• There are three important side effects from those rights.
• Ultimately, we can be substituting leisure for labor, a decrease in measured answer to the question whether income distribution is fair income, and attempts to appear more needy.

• A progressive tax is better than rights distribution.