LABOUR MARKETSupplyDemandInnovationInvestment

Daniela Perciun – Giulia Cavicchioli2015/2016Classe 4^AMIstituto ‘’Alessandro Manzoni’’

A LABOUR MARKET IS A MARKET WHERE PEOPLE OFFER THEIR SKILLS TO EMPLOYERS IN EXCHANGE FOR WAGES, SALARIES AND OTHER FORMS OF

COMPENSATION.

LABOUR FORCE

NON-LABOUR FORCE

PEOPLE IN PRISONS OR PSYCHIATRIC WARDS

STAY-AT HOME SPOUSES

CHILDREN PEOPLE SERVING IN

THE MILITARY

Commodity

MarketLabour Market

REFERS TO A PHYSICAL PLACE

IS VIEWED AS A PROCESS

DEMAND FOR LABOURDEPENDS ON:

MPR THE DEMAND FOR THE

GOODS THE WORKER IS PRODUCING

WAGE RATE

SUPPLY FOR LABOUR

IF THE PRICE OF LABOUR INCREASES, THEN THE SUPPLY OF LABOUR WILL INCREASE. ON THE OTHER

HAND, IF THE PRICE OF LABOUR DECREASES, THE SUPPLY OF LABOUR WILL DECREASE.

LABOUR MARKET EQUILIBRIUM

THE LABOUR MARKET WILL REACH EQUILIBRIUM WHEN THE SUPPLY OF LABOUR EQUALS THE DEMAND FOR LABOUR. THIS POINT OF EQUILIBRIUM IS CALLED “MARKET CLEARING”.

INNOVATION

IN THE PAST, AUTOMATION WAS LARGELY CONFINED TO MIDDLE-INCOMEROUTINE MANUFACTURING AND CLERKING OCCUPATIONS, BUT THINGS ARECHANGING.

CHALLENGES FOR LOW-SKILLED WORKERS

.SKILL OBSOLESCENCE AND THE LACK OF SKILL DEVELOPMENT.

THE DEVELOPMENT OF SKILLS COMPLEMENTARY TO NEW TECHNOLOGIES.

EDUCATIONAL EFFORTS SHOULD AIM TO PROVIDE WORKERS WITH BOTH TECHNICAL, CREATIVE AND SOCIAL SKILLS.

SKILLS ARE THE FUTURE OF WORK

JOBS THAT ARE NOT AT RISK OF COMPUTERISATION:

MANAGEMENT, EDUCATION,

HEALTHCARE SCIENCE OR

ENGINEERING JOBS

INVESTMENTINVESTMENT IN FACTORIES, MACHINERY, NEW TECHNOLOGY, AND IN

HEALTH, EDUCATION, AND TRAINING OF PEOPLE CAN RAISE FUTURE STANDARDS OF LIVING.

HUMAN CAPITAL THEORYEDUCATION INCREASES SKILLS AND THESE IN TURN INCREASE PRODUCTIVITY. HIGHER PRODUCTIVITY IS THEN REWARDED THROUGH HIGHER EARNINGS.

MADE BY PEOPLE THEMSELVES MADE BY EMPLOYERS INTHEIR EMPLOYEES

INVESTMENTS CAN BE

INVESTMENTS: THE

SOONER THE BETTER

PROBLEMS

• A STUDENT CANNOT USE HIMSELF AS GUARANTY FOR A HUMAN CAPITAL LOAN.

• THE ABSENCE OF STUDENT LOAN PROGRAMS.

IMPLICATIONS OF THE HUMAN CAPITAL THEORY

WHAT ARE THE BENEFITS OF A

UNIVERSITY DEGREE?

WHAT IS THE COST OF A UNIVERSITY DEGREE?

WORKERS WILL BE COMPENSATED BY HIGHER WAGES

DIRECT COSTS

COSTS FOR FOOD AND RENT

OPPORTUNITY COST

ON THE JOB TRAININGGARY BECKER DISTINGUISHED BETWEEN:

FIRM-SPECIFIC JOB TRAINING

GENERAL JOB TRAINING

SITOGRAPHY

• http://www.oxfordmartin.ox.ac.uk/downloads/academic/technology-globalisation-future-of-work_Mar2015.pdf

 • http://www.fte.org/teacher-resources/lesson-plans/efllessons/

lesson-5-labor-markets/ • http://siteresources.worldbank.org/EDUCATION/Resources/278200-

1099079877269/547664-1208379365576/DID_Labor_market_outcomes.pdf

 • https://www.youtube.com/watch?v=H894hRwJ1PE • http://highered.mheducation.com/sites/0070891540/

student_view0/chapter9/chapter_notes.html

THANK YOU FOR YOUR ATTENTION!

Daniela PerciunGiulia Cavicchioli4^ AM 2015-2016