Think of a job that you plan on having in the future. Describe the job and education that is needed and what type of salary do you hope to have once you enter your chosen profession??

RESTAURANT ANALOGY:

TOP CHEF

What happens when cooks are paid

Higher Wages?

Michael Symon’s restaurants are considered the top in Cleveland. Why is it in the best interest of Michael Symon to hire cooks and pay them top dollar?

Productivity!

Labor connected to Supply and Demand The demand for labor is sloping

downwards – Why? At a higher price of labor, the smaller

the quantity of labor demanded by businesses and firms.

How about the supply of labor – it is sloping upwards or in a positive direction

Why? The higher the wage, the larger the quantity of labor supplied.

Wages

Higher wages, for our example, cooks, benefits cooks because it encourages people to acquire the training to become a potential TOP CHEF!

Equilibrium Wages Due to our law of supply and demand,

an equilibrium wage will be created. It is a point on the graph where there is neither an excess supply or demand for workers in the labor market.

Why do wages vary?

Let’s hear your answers!!!

It depends on your skills!

1. Unskilled labor – no previous training or education is needed. Examples – McDonalds, Pizza Shops, etc.

2. Semi-skilled labor – minimal skills and education. Examples – lifeguards, short-order cooks.

Skills

3. Skilled labor – Specialized abilities and training. Examples – mechanics, carpenters.

4. Professional labor – Advanced skills and education. White-collar jobs.

Job markets work like other markets?

Do you deserve a raise? Everyone thinks he or she deserves a

raise. Labor markets work like other markets. To be successful, you must have

something to sell. Employees increase their value to

employers by increasing their education.

Level of Education and Earnings

High School Dropout, $20,176 High School Graduate, $27,768 Some College, $32,396 College Graduate, $46,384 Advanced Degree Holder, $57,408

Estimates of Work-Life Earnings

Not a HS Grad $766,951 HS Graduate $1,037,759 Bachelor’s Degree $1,838,432 Master’s Degree $2,127,947 Professional Degree $4,015,613

Now Let’s Look at THE GRAPH

Wage Discrimination

The Equal Pay Act of 1963 declared that male and female employees in the same work place, performing the same job had to receive the same pay.

Title VII of the Civil Rights Act of 1964 forbids job discrimination on the basis of race, sex, color, religion, or nationality.

Your Thoughts?

Do men and women receive the same pay for the same job today?