Demand and Supply at Work in Labor Markets

Demand and Supply at Work in Labor Markets tài liệu, giáo án, bài giảng , luận văn, luận án, đồ án, bài tập lớn về tất c...

Copyright 2011  Pearson Canada Inc. 24 - 1 Chapter 24 Aggregate Demand and Supply Analysis Copyright 2011  Pearson Canada Inc. 24 - 2 Aggregate Demand • Aggregate Demand - The relationship between the quantity of aggregate output demanded and the price level when all other variables are held constant • Based on the quantity theory of money – Determined solely by the quantity of money • Based on the components parts – Consumption, investment, government spending and net exports Y AD = C + I + G + NX Copyright 2011  Pearson Canada Inc. 24 - 3 Quantity Theory of Money Approach to Aggregate Demand M =quantity of money P= price level Y= aggregate real output (real income) P x Y = total nominal spending on goods and services V = the average number of time per year that a dollar is spent Multiplying both sides by M we derive the equation of exchange which relates money supply to aggregate spending M x V = P x Y Changes in aggregate spending are determined primarily by changes in the money supply M YxP V = Copyright 2011  Pearson Canada Inc. 24 - 4 Deriving the Aggregate Demand Curve • Changes in the price level induce changes in the aggregate output demanded and hence movement along the AD curve (points A, B, and C in Figure 24-1) • In the quantity theory, changes in the money supply are the primary source of changes in aggregate spending and thus shifts the AD curve. Copyright 2011  Pearson Canada Inc. 24 - 5 Aggregate Demand Curve Copyright 2011  Pearson Canada Inc. 24 - 6 Behaviour of Aggregate Demand’s Component Parts Y AD = C + I + G + NX The aggregate demand curve is downward sloping because P ↓ → M/P ↑ →i ↓ → I ↑ → Y AD ↑ and P ↓ → M/P ↑ →i ↓ → E ↓ → Y AD ↑ Copyright 2011  Pearson Canada Inc. 24 - 7 Factors that Shift Aggregate Demand • An increase in the money supply shifts AD to the right because it lowers interest rates and stimulates investment spending • An increase in spending from any of the components C, I, G, NX, will also shift AD to the right Copyright 2011  Pearson Canada Inc. 24 - 8 Factors That Shift the Aggregate Demand Curve I Copyright 2011  Pearson Canada Inc. 24 - 9 Factors That Shift the Aggregate Demand Curve II Copyright 2011  Pearson Canada Inc. 24 - 10 Aggregate Supply • Long-run aggregate supply curve (LRAS) – Determined by amount of capital and labor and the available technology – Vertical at the natural rate of output generated by the natural rate of unemployment • Short-run aggregate supply curve (SRAS) – Wages and prices are sticky – Generates an upward sloping SRAS as firms attempt to take advantage of short-run profitability when price level rises [...]... Run Aggregate Supply Short Run Aggregate Supply Factors that Shift Short Run Aggregate Supply I • Costs of production – – – – Tightness of the labor market Expected price level Wage push Change in production costs unrelated to wages (supply shocks) Factors that Shift Short Run Aggregate Supply II Equilibrium of AS and AD in the Short Run Equilibrium of AS and AD in the Long Run I Equilibrium of AS and. .. result of past high unemployment – Natural rate of unemployment shifts upward and natural rate of output falls below full employment – Expansionary policy needed to shift aggregate demand Demand and Supply at Work in Labor Markets Demand and Supply at Work in Labor Markets By: OpenStaxCollege Markets for labor have demand and supply curves, just like markets for goods The law of demand applies in labor markets this way: A higher salary or wage—that is, a higher price in the labor market—leads to a decrease in the quantity of labor demanded by employers, while a lower salary or wage leads to an increase in the quantity of labor demanded The law of supply functions in labor markets, too: A higher price for labor leads to a higher quantity of labor supplied; a lower price leads to a lower quantity supplied Equilibrium in the Labor Market In 2008, about 35,000 nurses worked in the Minneapolis–St Paul, Minnesota, metropolitan area, according to the Minnesota Nurses Association They worked for a variety of employers: hospitals, doctors’ offices, schools, health clinics, and nursing homes [link] illustrates how demand and supply determine equilibrium in this labor market The demand and supply schedules in [link] list the quantity supplied and quantity demanded of nurses at different salaries 1/15 Demand and Supply at Work in Labor Markets Labor Market Example: Demand and Supply for Nurses in Minneapolis–St Paul The demand curve (D) of those employers who want to hire nurses intersects with the supply curve (S) of those who are qualified and willing to work as nurses at the equilibrium point (E) The equilibrium salary is $70,000 and the equilibrium quantity is 35,000 nurses At an aboveequilibrium salary of $75,000, quantity supplied increases to 38,000, but the quantity of nurses demanded at the higher pay declines to 33,000 At this above-equilibrium salary, an excess supply or surplus of nurses would exist At a below-equilibrium salary of $60,000, quantity supplied declines to 27,000, while the quantity demanded at the lower wage increases to 40,000 nurses At this below-equilibrium salary, excess demand or a surplus exists Demand and Supply of Nurses in Minneapolis-St Paul Annual Salary Quantity Demanded Quantity Supplied $55,000 45,000 20,000 $60,000 40,000 27,000 $65,000 37,000 31,000 $70,000 35,000 35,000 $75,000 33,000 38,000 $80,000 32,000 41,000 The horizontal axis shows the quantity of nurses hired In this example, labor is measured by number of workers, but another common way to measure the quantity of labor is by the number of hours worked The vertical axis shows the price for nurses’ labor—that is, how much they are paid In the real world, this “price” would be total labor compensation: salary plus benefits It is not obvious, but benefits are a significant part (as high as 30 percent) of labor compensation In this example, the price of labor is 2/15 Demand and Supply at Work in Labor Markets measured by salary on an annual basis, although in other cases the price of labor could be measured by monthly or weekly pay, or even the wage paid per hour As the salary for nurses rises, the quantity demanded will fall Some hospitals and nursing homes may cut back on the number of nurses they hire, or they may lay off some of their existing nurses, rather than pay them higher salaries Employers who face higher nurses’ salaries may also try to replace some nursing functions by investing in physical equipment, like computer monitoring and diagnostic systems to monitor patients, or by using lower-paid health care aides to reduce the number of nurses they need As the salary for nurses rises, the quantity supplied will rise If nurses’ salaries in Minneapolis–St Paul are higher than in other cities, more nurses will move to Minneapolis–St Paul to find jobs, more people will be willing to train as nurses, and those currently trained as nurses will be more likely to pursue nursing as a full-time job In other words, there will be more nurses looking for jobs in the Twin Cities At equilibrium, the quantity supplied and the quantity demanded are equal Thus, every employer who wants to hire a nurse at this equilibrium wage can find a willing worker, and every nurse who wants to work at this equilibrium salary can find a job In [link], the supply curve (S) and demand curve (D) intersect at the equilibrium point (E) The equilibrium quantity of nurses in the Minneapolis–St Paul area is 35,000, and the equilibrium salary is $70,000 per year This example simplifies the nursing market by focusing on the “average” nurse In reality, of course, the market for nurses is actually made up of many smaller markets, like markets for nurses with varying degrees of experience and credentials Many markets contain closely related products that differ in quality; for instance, even a simple product like gasoline comes in regular, premium, and super-premium, each with a different price Even in such cases, discussing the average price of gasoline, like the average salary for nurses, can still be useful because it reflects what is happening in most of the submarkets When the price of labor is not at the equilibrium, economic ... Area Socioeconomic Variations in Cancer Incidence and Stage at Diagnosis in New Jersey, 1996-2002 Prepared by Karen Pawlish, MPH, ScD Raj Gona, MPH, MA Lisa M. Roché, MPH, PhD Betsy A. Kohler, MPH, CTR Susan Van Loon, RN, CTR Cancer Epidemiology Services Public Health Services Branch New Jersey Department of Health and Senior Services Eddy A. Bresnitz, MD, MS Deputy Commissioner/State Epidemiologist New Jersey Department of Health and Senior Services Fred M. Jacobs, MD, JD Commissioner New Jersey Department of Health and Senior Services Jon S. Corzine Governor Cancer Epidemiology Services New Jersey Department of Health and Senior Services PO Box 369 Trenton, NJ 08625-0369 (609) 588-3500 www.state.nj.us/health October 2007 INTENTIONALLY BLANK ACKNOWLEDGMENTS The following staff of the New Jersey State Cancer Registry and the Cancer Surveillance Program in the Cancer Epidemiology Services were involved in the collection, quality assurance and preparation of the data on incident cases of cancer in New Jersey: Toshi Abe, MSW, CTR Harrine Katz, CTR Pamela Agovino, MPH Joan Kay, CTR Anne Marie Anepete, CTR Thuy Lam, MPH Pamela Beasley Mireille Lemieux Tara Blando, MPH Henry Lewis, MPH Donna Brown-Horn, CTR Helen Martin, CTR Stasia Burger, MS, CTR Ilsia Martin, MS Emiliano Cornago, CTR Kevin Masterson, CTR Kathleen Diszler, RN, CTR Carl C. Monetti Thomas English, CTR John Murphy, CTR Lorraine Fernbach, CTR Xiaoling Niu, MS Ruthann Filipowicz Lisa Paddock, MPH Cynthia Grayon, CTR Maithili Patnaik, CTR Maria Halama, MD, CTR Theresa Pavlovcak, CTR Essam Hanani, MD, CTR Barbara Pingitor Denise Hansen Gladys Pyatt-Dickson, CTR Marilyn Hansen, CTR Karen Robinson-Fraser, CTR Kevin Henry, PhD Marcelina Rosario Joan Hess, RN, CTR Antonio Savillo, MD, CTR Margaret Hodnicki, RN, CTR Suzanne Schwartz, MS, CTR Yvette Humphries Felicia Stewart Nicole Jackson Celia Troisi, CTR Jamal Johnson, BS, CTR Helen Weiss, RN, CTR Linda Johnson, CTR Michael Wellins Catherine Karnicky, CTR Homer Wilcox III, MS We also acknowledge New Jersey hospitals, laboratories, physicians, dentists, and the states of Delaware, Florida, Maryland, New York, North Carolina, and Pennsylvania that reported cancer cases to the New Jersey State Cancer Registry. Cancer Epidemiology Services, including the New Jersey State Cancer Registry, receives support from the Surveillance, Epidemiology, and End Results Program of the National Cancer Institute under contract HHSN261200544005C ADB N01-PC-54405, the National Program of Cancer Registries, Centers for Disease Control and Prevention under cooperative agreement 1 U58/DP000808-01, and the State of New Jersey. iii TABLE OF CONTENTS Acknowledgments……….…………………………………………………………… iii Introduction………………………………………………………………………………1 Summary………………………………………………………………………………….3 Cancer Incidence by Poverty Level – New Jersey, 1996-2002…………….………… 5 All Cancer Sites Combined …………………………………………………… 6 Female Breast Cancer ………………………………….……………………….8 Cervical Cancer………………………………………………………………… 10 Colorectal Cancer……………………………………………………………… 12 Endometrial (Corpus and Uterus, NOS) Cancer…………………………………14 Esophageal Cancer…………… ……………………………………………… 16 Liver Cancer ………………………………………………………………… 18 Lung and Bronchus Cancer…….……………………………………………… 20 Melanoma of the Skin……………………………………………………………22 Non-Hodgkin Lymphoma……………………………………………………… 24 Oral Cavity IZA DP No. 806 Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies Gerard J. van den Berg DISCUSSION PAPER SERIES Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor June 2003 Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies Gerard J. van den Berg Free University of Amsterdam, Tinbergen Institute, IFAU-Uppsala, INSEE-CREST, CEPR and IZA Bonn Discussion Paper No. 806 June 2003 IZA P.O. Box 7240 D-53072 Bonn Germany Tel.: +49-228-3894-0 Fax: +49-228-3894-210 Email: iza@iza.org This Discussion Paper is issued within the framework of IZA’s research area Evaluation of Labor Market Policies and Projects. Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions. The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor, (2) internationalization of labor markets, (3) welfare state and labor market, (4) labor markets in transition countries, (5) the future of labor, (6) evaluation of labor market policies and projects and (7) general labor economics. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available on the IZA website ( www.iza.org ) or directly from the author. IZA Discussion Paper No. 806 June 2003 ABSTRACT Multiple Equilibria and Minimum Wages in Labor Markets with Informational Frictions and Heterogeneous Production Technologies ∗ It is often argued that a mandatory minimum wage is binding only if the wage density displays a spike at it. In this paper we analyze a model with search frictions and heterogeneous production technologies, in which imposition of a minimum wage affects wages even though, after imposition, the lowest wage in the market exceeds the minimum wage. The model has multiple equilibria as a result of the fact that the reservation wage of the unemployed and the lowest production technology in use affect each other. Imposition of a minimum wage may improve social welfare. JEL Classification: J3, D83, J42, J6, C72 Keywords: wages, productivity, job search, unemployment, imperfect information, equilibrium, labor market policy, matching, congestion Gerard J. van den Berg Department of Economics Free University of Amsterdam De Boelelaan 2 Technical information: (202) 691-6378 http://www.bls.gov/cps/ Media contact: 691-5902 USDL 05-1457 For release: 10:00 A.M. EDT Tuesday, August 2, 2005 (This release was reissued on Wednesday, August 10, to correct the September 2001 data for workers of Hispanic or Latino ethnicity in table A. No other data were affected.) COMPUTER AND INTERNET USE AT WORK IN 2003 In October 2003, 77 million persons used a computer at work, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. These workers accounted for 55.5 percent of total employ- ment. About 2 of every 5 employed individuals connected to the Internet or used e-mail while on the job. These proportions were slightly higher than those measured in the prior survey conducted in September 2001. (See table A.) These findings are from a special supplement to the October 2003 Current Population Survey (CPS). The CPS is a monthly household survey that is one of the main sources of information on the U.S. labor force. The Computer Use Survey also collected data on computer and Internet or e-mail use at home, school, and work as well as use of the Internet for job search. The data presented in this release focus on computer and Internet use at work and on job search methods using the Internet. For additional information about the survey, see the Technical Note. Some of the highlights from the 2003 survey include: • The proportion of workers who used a computer at work was higher for women (61.8 percent) than for men (49.9 percent). • Employed women had a greater likelihood of using the Internet at work than employed men (45.1 and 38.7 percent, respectively). • Asians were more likely than whites, blacks, or Hispanics or Latinos to use a computer and the Inter- net at work. • The likelihood of computer and Internet use at work is greater for workers with more education. • In terms of occupation, there were large variations in the proportions of workers who used a computer at work. The computer-use rate was relatively high for managers and professionals (about 80 percent) and sales and office workers (67 percent). In contrast, about 26 percent of workers in natural resources, construction, and maintenance and production, transportation, and material moving occu- pations used a computer at work. • The most commonly reported task for the 77 million workers who used a computer at work was ac- cessing the Internet or using e-mail. Table A. Computer and Internet use at work by selected characteristics, September 2001 and October 2003 September 2001 r October 2003 Total employed Used a computer at work Used the Internet at work Total employed Used a computer at work Used the Internet at work Total Percent of employed Total Percent of employed Total Percent of employed Total Percent of employed AGE AND SEX Total, 16 years and over 137,050 73,055 53.3 52,463 38.3 138,823 76,986 55.5 57,892 41.7 16 to 24 years 19,901 6,994 35.1 3,916 19.7 19,304 6,991 36.2 4,234 21.9 16 to 19 years 6,499 1,490 22.9 549 8.4 5,788 1,301 22.5 559 9.7 20 to 24 years 13,402 5,504 41.1 3,367 25.1 13,516 5,690 42.1 3,675 27.2 25 years and over 117,149 66,061 56.4 48,547 41.4 119,519 69,995 58.6 53,658 44.9 25 to 34 years 30,847 17,561 56.9 13,109 42.5 30,401 17,641 58.0 13,608 44.8 35 to 44 years 35,669 20,700 58.0 15,239 42.7 34,854 20,797 59.7 16,226 46.6 45 to 54 years 31,205 18,260 58.5 13,518 43.3 32,221 19,607 60.9 15,017 46.6 55 to 64 years 14,916 8,023 53.8 5,739 38.5 17,202 DANANG UNIVERSITY UNIVERSITY OF ECONOMICS TRADE DEPARTMENT  MICROECONOMICS Demand and Supply Teacher: Nguyen Huu Hien Members of group: • Le My Linh • Duong Minh Ha • Le Thanh Quyen • Le Thi Truc Kieu • Huynh Thi Thuy Trang • Hoang Thi Phuong Thao Class: 39K01.1-CLC Dec 11 DEMAND and SUPPLY MICROECONOMICS and MACROECONOMICS   Microeconomics is a branch of economics that studies the behavior of individual economics units: consumers, workers, investors, owners of land, business firms in making decisions on the allocation of limited resources Typically, it applies to markets where goods or services are bought and sold Microeconomics examines how these decisions and behaviors affect the supply and demand for goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services This is in contrast to macroeconomics, which involves the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets This includes national, regional, and global economies With microeconomics, macroeconomics is one of the two most general fields in economics MICROECONOMICS 14 Dec 11 DEMAND and SUPPLY DEMAND and SUPPLY    Demand Definition: Demand is a schedule or a curve that shows the various amounts of product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time The demand curve: the inverse relationship between price and quantity demanded for any product can be represented on a simple graph, in which, by convention, we measure quantity demanded on the horizontal axis and price on the vertical axis Such a curve is called a demand curve Its downward slope reflects the law of demand – people buy more of a product, service, or resource as its price falls Ex: P D Q Determinants of demand: the demand curve shifts because of changes in: • Consumer tastes • The number of buyers in the market • Consumer income • The prices of substitute or complementary goods • Consumer expectations MICROECONOMICS 14 Dec 11 DEMAND and SUPPLY Market demand: market demand includes all of individual demands on the market In theory, market demand is obtained by adding all the individual quantities demanded at each price; we then plot the price and the total quantity demanded as one point on the market demand curve Change in demand: a change in demand schedule or, graphically, a shift in the demand curve is called a change in demand It occurs because the consumer’s state of mind about purchasing the product has been altered in response to a change in one or more of the determinants of demand If consumers desire to buy more corn at each possible price, that increase in demand is shown as a shift of the demand curve to the right Changes in quantity demanded: is a movement from one point to another point – from one price-quantity combination to another- on a fixed demand schedule or demand curve The cause of such a change is an increase or decrease in the price of the product under consideration This is a simple example: With the price 15,000 VND/kg of oranges, consumer A is ready to buy kg for his family for one day in hot summer months, 2008 in Hanoi However, when the price increases by 30,000 VND/kg, that consumer only desire to and afford to buy kg When the orange price is 15,000 VND/kg, the oranges quantity demanded is marketed to 10 tons per day But when the price increases by 30,000 VN/kg, there are only tons of oranges per day in Hanoi market So, with the different price, the consumers will desire to and afford to buy different quantities of articles Whereby, we see that the oranges quantity demanded of consumer A in Hanoi is kg/day while Hanoi market demand is 10 tons of oranges per day when the orange price is 15,000 ... Supply at Work in Labor Markets financial investments, and demanders of financial capital when they borrow or receive financial investments In the demand and supply analysis of labor markets, ... Higher input prices lower demand for labor 5/15 Demand and Supply at Work in Labor Markets Click here to read more about “Trends and Challenges for Work in the 21st Century.” Shifts in Labor Supply. .. the original demand curve for labor in each market In each graph, the original point of equilibrium, E0, occurs at the price W0 and the quantity Q0 7/15 Demand and Supply at Work in Labor Markets