10.0 - labour market outcomes Flashcards
(18 cards)
decribe the trends within labour productivity and outcomes
10.1 - wage outcomes
- growth of real wages > productivity growth, less employer profit
- wage growth < inflation + productivity growth, real labour costs fall, profit rises
- when real labour costs rise, employers replaced with FOP’s
explain differences in wage outcomes between occupations
10.1 - wage outcomes
- fluxuation in skills, education, training and working conditions
- occupational mobility (high mobility = high labour supple and low wage)
explain differences in wage outcomes within the same occupation
10.1 - wage outcomes
- experience & qualifications
- geographic mobility
- productivity of labour (enterprise bargaining for higher wage rates)
- capacity of a firm to pay (market power)
State the external influences of wage outcomes
10.1 - wage outcomes
- age (highest pay in 25-64)
- gender (workplace discrimination)
- migrant satus and cultural background
describe the trends and influences of distribution of income
10.2 - trends in the distribution of income from work
- past 3 decades, significant shift from centralised wage determination to enterprise baragaining
- leads to greater wage outcome disparity
- considerabe inequality growth (highest quintile, 40% of income (5x higher than lowest quintile))
describe the forms of non-wage outcomes
10.3 - non wage outcomes
- salary packing (wages supplemented with other benefits)
- bonus cash payments (performance bonus (company/individual))
- flexiblity improvements (leave, extended leave, job sharing, flexible work options)
state the economic benefits of inequality
10.4 - costs and benefits of inequality
- encourages increased quality of workforce
- more mobile labour force
- encourages entrepreneurial risk
- potential for higher savings and capital formation (less reliance on foreign capital for domestic envestment)
state the economic costs of inequality
10.4 - costs and benefits of inequality
- recduces overall utility (principle of diminishing marginal utility)
- reduces economic growth
- reduces consumption and investment
- creates conspicious consumption (creates leisure class)
- poverty and social issues
- increased cost of welfare support
state the aspects of social inequality of opportunities
10.4 - costs and benefits of inequality
- existing inequality in distribution of income
- aquired wealth through inheritance
- varying mental and physical attributes
- varying access to networks of people
state the social costs of inequality
10.4 - costs and benefits of inequality
- worse wellbeing (reducing inequality as a long-term strategy)
- social class division (working, middle, upper), creastes geographical disparity
- poverty
define ‘unemplyment rate’
10.5 - unemployment
the no. of unemployed persons expressed as a percentage of the total labour force
define cyclical unemplyment and state the types of cyclical unemployment
10.5 - unemployment
- caused by the downturn of the business cycle because demand for labour is derived
- seasonal, frictional, structural
define and state the features of long term unemployment
10.5 - unemployment
- 12+ months of unemplyment
- economy may not have grown fast enough to counteract cyclical unemployment
- may lost job-related skills
- employers less likely to employ
explain hard-core, hidden and under employment
10.5 - unemployment
- unsuitable for work for personal reasons
- given up seeking work
- part time/casual jobs who want to work more hours (contribute to underutilised labour)
explain the concept of contractors
10.6 - movement from full-time work
- a specific service allowing for greater service provision
- set under commercial law, not employment law
explain the concept of outsourcing or subcontracting
10.6 - movement from full-time work
- paying another business to perdorm an outer-business focused task
- benefits of staff without employment obligations
state the benefits of the casualisation of work
10.6 - movement from full-time work
- flexibility for employers
- employers avoid paying some non-wage costs
- flexibility for employees with other commitments
state the downsides of the casualisation of work
10.6 - movement from full-time work
- less job security
- more uncertainty in financial future
- less loyal staff and less developed workplace skills
