Presentation Plus! Economics: Principles and Practices Copyright by The McGraw-Hill Companies, Inc.

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1 Presentation Plus! Economics: Principles and Practices Copyright by The McGraw-Hill Companies, Inc. Developed by FSCreations, Inc., Cincinnati, Ohio Send all inquiries to: GLENCOE DIVISION Glencoe/McGraw-Hill 8787 Orion Place Columbus, Ohio 43240

2 Chapter 8 Employment, Labor, and Wages

3 CHAPTER INTRODUCTION SECTION 1 SECTION 2 SECTION 3 SECTION 4 CHAPTER SUMMARY The Labor Movement Resolving Union and Management Differences Labor and Wages Employment Trends and Issues CHAPTER ASSESSMENT 3 Click a hyperlink to go to the corresponding section. Press the ESC key at any time to exit the presentation.

4 Economics and You What level of income do you want to earn after you graduate? Will your current training and skills allow you to reach your income goal? In Chapter 8, you will learn about the labor force and employment issues. Click the Speaker button to listen to Economics and You. 4

5 Chapter Objectives Section 1: The Labor Movement Explain why unions are still important today. Discuss the development of the labor movement from the late 1700s to the 1930s. Relate labor s successes during the Great Depression. Describe the major labor developments since World War II. 5 to display the information.

6 Chapter Objectives Section 2: Resolving Union and Management Differences Explain the differences among kinds of union arrangements. Describe several ways to resolve labor and management differences when collective bargaining fails. 6 to display the information.

7 Chapter Objectives Section 3: Labor and Wages Identify four main categories of labor. Explain the importance of noncompeting labor grades. Describe three different approaches to wage determination. 7 to display the information.

8 Chapter Objectives Section 4: Employment Trends and Issues Explain why union membership has declined. Describe reasons for the discrepancy in pay between men and women. 8 to display the information.

9 Click the mouse button to return to the Contents slide.

10 Study Guide Main Idea Labor unions are organizations that attempt to improve the working conditions of their members through joint action. Reading Strategy Graphic Organizer As you read the section, compare how an industrial union differs from a trade union. Complete a graphic organizer like the one on page 193 of your textbook by listing the differences. 10 to display the information. Section 1 begins on page 193 of your textbook.

11 Study Guide (cont.) Key Terms macroeconomics civilian labor force craft union trade union company union Great Depression right-to-work law independent union industrial union strike picket boycott lockout 11 to display the information. Section 1 begins on page 193 of your textbook.

12 Study Guide (cont.) Objectives After studying this section, you will be able to: Explain why unions are still important today. Discuss the development of the labor movement from the late 1700s to the 1930s. Relate labor s successes during the Great Depression. Describe the major labor developments since World War II. Applying Economic Concepts Civilian Labor Force Do you have a part-time job? If so, what is your role in the civilian labor force? Click the Speaker button to listen to the Cover Story. 12 to display the information. Section 1 begins on page 193 of your textbook.

13 Introduction Labor issues appear in the news all the time. After all, working for a living is one of the single most important things we do. How well we do, as measured by the satisfaction we get and the income we receive, affects virtually every other aspect of our lives. Accordingly, any study of economics that ignores the way the labor factor of production earns its income would be incomplete. 13 to display the information.

14 Introduction (cont.) The study of labor is part of macroeconomics. Macroeconomics is the branch of economics that deals with the economy as a whole, including employment, gross domestic product, inflation, economic growth, and the distribution of income. For example, the population of the United States by mid-2003 was approximately 291 million people. 14 to display the information.

15 Introduction (cont.) Slightly more than half, or about 146 million, belonged to the civilian labor force men and women 16 years old and over who are either working or actively looking for a job. For example, the population of the United States in 1999 was approximately 274 million people. The civilian classification excludes members of the armed forces, the prison population, and other institutionalized persons. 15 to display the information.

16 Introduction (cont.) Nearly 85 percent of those employed had no connection with unions, 13.2 percent were members of unions, and 1.4 percent were nonunion members being represented by unions. 16 to display the information.

17 Introduction (cont.) Although the percentage of union workers is small, unions are important for two reasons. First, they played a major role in promoting legislation that affects pay levels and working conditions today. Second, unions are a force in the economy, with membership of nearly 16 million people. 17 to display the information.

18 Introduction (cont.) Historically, unions tended to be concentrated in heavy manufacturing industries. More recently, unions have made inroads in the service sector, especially among government workers. Figure 8.2 Union Membership and Representation by Industry 18 to display the information.

19 Did You Know? The stock market crash on October 29, 1929, signaled the start of the Great Depression. In that year, national income was more than $87 billion. By 1933, just four years later, national income had plummeted by more than 50 percent, to just over $40 billion. More than 80,000 businesses had failed, and nine million savings accounts had been cleaned out. 19 to display the information.

20 Early Union Development The nation s first unions were comprised of skilled workers. After the Civil War, as industry expanded, the labor force became more unified. Two types of unions developed the trade union and the industrial union. Unions used strikes, pickets, and boycotts to help members get better pay, better hours, and job security. 20 to display the information.

21 Early Union Development (cont.) Employers resisted unions through lockouts, firings, and even setting up company unions. Historically, the courts have viewed unions with hostility. 21 to display the information.

22 Early Union Development (cont.) Figure 8.3 Trade (Craft) and Industrial Unions 22

23 Discussion Question Webster s Dictionary says that to conspire is to join in a secret agreement to do an unlawful or wrongful act or an act which becomes unlawful as a result of the secret agreement. Do you agree with those who viewed unions as conspiracies against business? Why or why not? Answers will vary, but should focus on the conflict between unions and business. 23 to display the answer.

24 Labor During the Great Depression Unemployment and cut wages marked the decade of the Great Depression and encouraged unions to organize workers. The government began to pass laws protecting unions. 24 to display the information.

25 Discussion Question Why do you think the government began to protect unions during the Great Depression? Answers will vary, but students may indicate that workers suffered during the Depression and the unions promised some relief. 25 to display the answer.

26 Labor Since World War II After World War II, new laws began to limit union activity. The AFL-CIO was created when two powerful unions joined forces. Independent unions are those that do not belong to the AFL-CIO. 26 to display the information.

27 Discussion Question Do you see any correlation between the strength of the nation s economy and the government s attitude toward unions? Explain your answer. Students should use some of the facts presented in this section to support their answers. 27 to display the answer.

28 Section Assessment Main Idea Using your notes from the graphic organizer activity on page 193, describe the purpose of labor unions. The purpose of labor unions is to promote legislation and decisions that allow higher pay, better hours and working conditions, and job security. 28 to display the answer.

29 Section Assessment (cont.) Explain why unions are important today. They continue to influence legislation affecting pay levels and working conditions. 29 to display the answer.

30 Section Assessment (cont.) Describe several reasons for the rise of unions prior to Use pages 194 to 196 of your textbook to formulate you description. 30 to display the answer.

31 Section Assessment (cont.) State why unions became successful during the Great Depression. Common problems united workers; union organizers renewed efforts; and federal legislation increased the power of unions. 31 to display the answer.

32 Section Assessment (cont.) Describe the major labor developments since World War II. Use pages 196 to 198 of your textbook to formulate your description. 32 to display the answer.

33 Section Assessment (cont.) Making Generalizations How did the major legislative acts discussed in the section reflect the rise and decline of the labor movement? Legislation prior to World War II tended to be pro-union, giving labor more power. Legislation passed after the war was generally antiunion and limited labor s power. 33 to display the answer.

34 Section Close Compare the role of the labor movement in the late 1800s to its present-day role. 34

35 Click the mouse button to return to the Contents slide.

36 Study Guide Main Idea Unions and management negotiate contracts through a process that is known as collective bargaining. Reading Strategy Graphic Organizer As you read the section, complete a graphic organizer similar to the one on page 200 of your textbook that describes the different ways labor disputes are resolved. 36 to display the information. Section 2 begins on page 200 of your textbook.

37 Study Guide (cont.) Key Terms closed shop union shop modified union shop agency shop grievance procedure mediation arbitration fact-finding injunction seizure 37 to display the information. Section 2 begins on page 200 of your textbook.

38 Study Guide (cont.) Objectives After studying this section, you will be able to: Explain the differences among kinds of union arrangements. Describe several ways to resolve labor and management differences when collective bargaining fails. Applying Economic Concepts Union Arrangements Does the company that you or your parents work for have a union? What different kinds of unions exist today? Click the Speaker button to listen to the Cover Story. 38 to display the information. Section 2 begins on page 200 of your textbook.

39 Introduction Over the years, many disputes have occurred between labor and management. Sometimes employees take action against their employer, as during the 1981 air traffic controllers strike. Sometimes the employer takes action against its employees, as in the case of the NBA lockout. While the NBA was finally able to settle its difficulties, there are still other ways to resolve the deadlock had they needed them. 39 to display the information.

40 Did You Know? The National Labor Relations Act of 1935 guaranteed U.S. workers the right to form unions and to participate in collective bargaining. In 1998, about nine million people in the private sector worked under 100,000 contracts, each one a result of collective bargaining agreements. 40 to display the information.

41 Kinds of Union Arrangements In a closed shop, the employer agrees to hire only union members. In a union shop, most workers belong to a union. In a modified union shop, workers cannot be made to join the union. In an agency shop, workers must pay union dues, whether or not they are union members. 41 to display the information.

42 Kinds of Union Arrangements Figure 8.4 Right to Work, State by State 42

43 Discussion Question Do you think agency shops are unfair? Why or why not? Answers will vary, but students should consider the need for a union and how unions can fail to work if all people are not involved. They should also consider how agency shops could be taking away a worker s right to choose. 43 to display the answer.

44 Collective Bargaining When labor and management agree to mediation, a neutral person helps settle the dispute. With arbitration, labor and management agree to abide by a third party s decision. Disputes also can be resolved through factfinding, in which a neutral third party presents non-binding recommendations. The government also can get involved in labor disputes by issuing injunctions or resorting to seizures. 44 to display the information.

45 Collective Bargaining (cont.) The president can intervene by publicly appealing to both parties to resolve their differences, by firing federal workers who have broken their oath not to strike (1981 air traffic controllers), and in some cases by using emergency powers (1997 American Airline pilots). 45 to display the information.

46 Discussion Question Imagine that you are a union member. Which form of collective bargaining do you think would be most effective? Would your answer be different if you were a business owner? Why or why not? Answers will vary but should reflect an understanding of the four methods of collective bargaining discussed here. 46 to display the answer.

47 Section Assessment Main Idea Using your notes from the graphic organizer activity on page 200, explain the purpose of collective bargaining. The purpose of collective bargaining is to discuss the demands of labor and management and reach a compromise. 47 to display the answer.

48 Section Assessment (cont.) List four kinds of union arrangements. They are: closed shop, union shop, modified union shop, and agency shop. 48 to display the answer.

49 Section Assessment (cont.) Explain six ways to resolve union and management differences when collective bargaining fails. The six ways to resolve differences are: mediation, arbitration, factfinding, injunction, seizure, and presidential intervention. 49 to display the answer.

50 Section Assessment (cont.) Sequencing Information If you represented a company during a collective bargaining session, and if negotiations were deadlocked, what course of action would you recommend? Why? Answers will vary. 50 to display the answer.

51 Section Assessment (cont.) Making Comparisons How does voluntary arbitration differ from mediation? voluntary arbitration: both sides agree that the decision of a third party will be accepted as final; mediation: decision of the third party does not have to be accepted by either party 51 to display the answer.

52 Section Close Speculate how arrangements between employees and employers might be handled other than through collective bargaining. 52

53 Click the mouse button to return to the Contents slide.

54 Study Guide Main Idea Wages differ for a variety of reasons, including skills, type of job, and location. Reading Strategy Graphic organizer As you read the section, complete a graphic organizer similar to the one on page 205 of your textbook by listing the reasons wages differ from one region to another. 54 to display the information. Section 3 begins on page 205 of your textbook.

55 Study Guide (cont.) Key Terms unskilled labor semiskilled labor skilled labor professional labor noncompeting labor grades theory of negotiated wages seniority signaling theory labor mobility wage rate traditional theory of wage determination equilibrium wage rate 55 to display the information. Section 3 begins on page 205 of your textbook.

56 Study Guide (cont.) Objectives After studying this section, you will be able to: Identify four main categories of labor. Explain the importance of noncompeting labor grades. Describe three different approaches to wage determination. Applying Economic Concepts Signaling Theory Believe it or not, diplomas have something in common with prices. What signals do diplomas send? Click the Speaker button to listen to the Cover Story. 56 to display the information. Section 3 begins on page 205 of your textbook.

57 Introduction Investment in human capital is one of the more important investments we can make. The extent to which we invest in our own level of skills, experience, and knowledge even affects the way we describe and classify labor. 57 to display the information.

58 Did You Know? In the first quarter of 1997, full-time U.S. workers in the bottom 10 percent of the wage range actually made an average of $6.48 and hour, despite the fact that the federal minimum wage was set at $4.75 an hour. In fact, during that time of low unemployment rates, wages for those lowest-paid workers actually increased at a faster rate than the wages of workers in the middle wage range. 58 to display the information.

59 Categories of Labor Unskilled laborers make some of the lowest wages. Semiskilled workers do jobs that require a minimum amount of training. Skilled workers hold jobs that require experience and training. Professional workers do jobs that require a high level of knowledge-based education and managerial skills. 59 to display the information.

60 Discussion Question In your opinion, should a higher investment in human capital be rewarded with higher wages? Why or why not? Answers will vary but should reflect an understanding of the relationship between human capital and levels of knowledge and skills. 60 to display the answer.

61 Noncompeting Labor Grades People must have the ability, the initiative, and the money to obtain additional education and training. Sometimes people are faced with a lack of opportunity for additional training and education. Sometimes people lack the initiative they need to get ahead. 61 to display the information.

62 Discussion Question Which do you think is most critical in moving from one labor category to another ability, initiative, or money? Answers will vary but should reflect an understanding of the importance of all these elements in the ability to move on to other labor categories. 62 to display the answer.

63 Wage Determination The traditional theory of wage determination says that supply and demand together will determine the equilibrium wage rate. The theory of negotiated wages uses organized labor s bargaining strength to help explain wage differentials. According to the signaling theory, employers are willing to pay more for those people with certain indicators of superior ability. 63 to display the information.

64 Wage Determination (cont.) Figure 8.5 A The Traditional Theory of Wage Determination 64

65 Wage Determination (cont.) Figure 8.5 B The Traditional Theory of Wage Determination 65

66 Wage Determination (cont.) Figure 8.6 Median Weekly Earnings by Occupation and Union Affiliation 66 to display the information.

67 Discussion Question Do you think it is fair that professional athletes have one of the nation s highest wage rates? Why or why not? Answers will vary. Students may say that the pay received by professional athletes is a result of supply and demand determining the equilibrium wage rate. 67 to display the answer.

68 Regional Wage Differences Wages can vary when demand for certain skilled positions exceeds supply. Employers tend to offer higher wages in areas where the cost of living is higher than normal. People sometimes are willing to accept lower wages if the location of the job is attractive to them. 68 to display the information.

69 Discussion Question What factors might you be willing to compromise if it meant you could get a job in the place you most want to live? Answers will vary but should illustrate some of the factors that contribute to differences in wage rates. 69 to display the answer.

70 Section Assessment Main Idea Using your notes from the graphic organizer activity on page 205, explain why wage rates differ among regions. Wage rates differ among regions due to lack of labor mobility, cost of living, and attractiveness of location. 70 to display the answer.

71 Section Assessment (cont.) List the four categories of labor. They are: unskilled labor, semiskilled labor, skilled labor, and professional labor. 71 to display the answer.

72 Section Assessment (cont.) Explain the importance of noncompeting labor grades. Individuals with different levels of experience, training, and education do not compete against one another for jobs. 72 to display the answer.

73 Section Assessment (cont.) Describe three different approaches to wage determination. Use the information on pages 207 to 208 to formulate your description. 73 to display the answer.

74 Section Assessment (cont.) Making Comparisons How does the category of semiskilled labor differ from unskilled labor? semiskilled: individuals with enough mechanical abilities and skills to operate machines requiring minimum training; unskilled: those working with their hands due to lack of skills required for other tasks 74 to display the answer.

75 Section Assessment (cont.) Making Generalizations If you were a semiskilled worker, what could you do to move into a higher category of noncompeting labor? You could obtain additional skills, obtain additional education, or more training. 75 to display the answer.

76 Section Close Discuss the following: The forces of supply and demand should be the only factors that determine wages. 76 to display the answer.

77 Click the mouse button to return to the Contents slide.

78 Study Guide Main Idea Important employment issues include union decline, unequal pay, and the minimum wage. Reading Strategy Graphic organizer As you read the section, complete a graphic organizer like the one on page 211 of your textbook to explain why comparible worth is difficult to apply. 78 to display the information. Section 4 begins on page 211 of your textbook.

79 Study Guide (cont.) Key Terms giveback two-tier wage system glass ceiling comparable worth set-aside contract part-time worker minimum wage current dollars real or constant dollars base year 79 to display the information. Section 4 begins on page 211 of your textbook.

80 Study Guide (cont.) Objectives After studying this section, you will be able to: Explain why union membership has declined. Describe reasons for the discrepancy in pay between men and women. Applying Economic Concepts Minimum Wage Have you ever worked at a job and earned exactly $5.15 an hour? Find out more about the minimum wage. Click the Speaker button to listen to the Cover Story. 80 to display the information. Section 4 begins on page 211 of your textbook.

81 Introduction Important issues abound in today s labor market. The two-tier wage structure and other issues have an enormous impact on morale and consequently, productivity in the economy. 81 to display the information.

82 Did You Know? In 1991 Congress established the Glass Ceiling Commission. In 1995, the Commission observed that 95 to 97 percent of all big businesses top management were men. Although women held almost half the nation s management and professional positions, they were usually in government, health care, or social welfare fields that traditionally pay lower wages than jobs found in the private sector. 82 to display the information.

83 Decline of Union Influence Union membership has declined because of unfriendly businesses, new workers with little loyalty to organized labor, and cutbacks in production by unionized companies. Businesses are using givebacks, bankruptcy claims, and two-tier wage systems to lower union-negotiated wages. 83 to display the information.

84 Decline of Union Influence (cont.) Figure 8.7 Union Membership 84

85 Discussion Question What events could prompt workers to rejoin a union? Answers will vary but should reflect an understanding of the basic goals of union membership. 85 to display the answer.

86 Lower Pay for Women Women, on the whole, have less experience and education to bring to the working world then their male counterparts. Some higher paying jobs have a larger percentage of male workers, while some lower paying jobs have a larger percentage of female workers. The glass ceiling is an example of the discrimination women face in the workplace. 86 to display the information.

87 Lower Pay for Women (cont.) The Equal Pay Act and the Civil Rights Act both work to prevent wage and salary discrimination. Some states hope to close the gender income gap by defining jobs of comparable worth (equal pay for equal work). Set-aside contracts are contracts that will be made only with a specific group. 87 to display the information.

88 Lower Pay for Women (cont.) Figure 8.8 Median Female Income as a Percentage of Male Income 88

89 Discussion Question In what ways could a two-tier wage system contribute to lower pay for women? Students may say that since women are newcomers to certain fields, they will receive the lower pay on the tier. 89 to display the answer.

90 Part-Time Workers Part-time workers cost employers less in benefits. Critics say part-time employment s low wages and lack of benefits make it difficult for workers to earn a decent living. 90 to display the information.

91 Discussion Question Do you agree with the critics of parttime employment? Why or why not? Answers will vary, but students should examine the criticism and support their opinions with examples from the textbook. 91 to display the answer.

92 The Minimum Wage Opponents claim the minimum wage does not promote economic freedom. In current dollars, the minimum wage appears to have risen over time. Measurements in real dollars take inflation into account. The ratio of minimum wage to manufacturing wage has been steadily decreasing for the past 30 years. 92 to display the information.

93 The Minimum Wage (cont.) Figure 8.10A The Minimum Wage 93

94 The Minimum Wage (cont.) Figure 8.10B The Minimum Wage 94

95 The Minimum Wage (cont.) Figure 8.10C The Minimum Wage 95

96 Discussion Question Why does looking at manufacturing wages help to understand the minimum wage? Student answers should indicate that it helps to compare the buying power of those making minimum wage to the buying power of those making manufacturing wages. 96 to display the answer.

97 Section Assessment Main Idea Using your notes from the graphic organizer activity on page 211, write a definition of comparable worth in your own words. Use the information on page 215 to formulate your definition. 97 to display the answer.

98 Section Assessment (cont.) List three reasons for the decline of unions. Many employers have kept unions out of their businesses. Many additions to the labor force have little loyalty to organized labor. Also, many unions have become the victims of their own success. 98 to display the answer.

99 Section Assessment (cont.) Describe three reasons for the income gap between men and women. Reasons include: women tend to fill lower-paying positions; discrimination prevents them from getting promotions; and career interruptions for childbearing affect women s seniority. 99 to display the answer.

100 Section Assessment (cont.) Describe the current trends in parttime employment. It has been growing due to increased hours in retail and the need to fill extra positions during peak periods. 100 to display the answer.

101 Section Assessment (cont.) Explain why it is necessary to consider inflation when examining the minimum wage. As prices tend to increase over time, purchasing power of fixed minimum wage decreases. 101 to display the answer.

102 Section Assessment (cont.) Drawing Conclusions In your opinion, do cultural stereotypes influence the income gap between men and women? Answers will vary. 102 to display the answer.

103 Section Close As a class, speculate on what the major employment trends and issues in the next century might be. 103

104 Click the mouse button to return to the Contents slide.

105 Section 1: The Labor Movement Craft or trade unions, and industrial unions were established by the end of the Civil War. Unfavorable public attitudes existed toward labor: The Sherman Antitrust Act was used against labor and even the Clayton Act was ignored by the courts. Attitudes shifted in favor of labor during the Great Depression with the passage of the Norris- LaGuardia Act, the Wagner Act, and the Fair Labor Standards Act. Public opinion shifted against labor again after World War II. The Taft-Hartley Act in 1947 limited union activity and allowed states to pass right-towork laws. 105 to display the information.

106 Section 1: The Labor Movement (cont.) The union movement was dominated by the AFL and the CIO, which merged in 1955 to form the AFL-CIO. 106

107 Section 2: Resolving Union and Management Differences The closed shop (now illegal) requires that employers hire only union members selected by the union. The union shop requires that an employee join the union shortly after being hired. The modified union shop gives the employee the option to join the union after being hired. The agency shop requires that workers pay dues to the union, but does not require the workers to join, even though the union represents all workers. When collective bargaining fails, several other methods are available to settle labor disputes, including mediation, arbitration, fact-finding, the use of injunctions, and seizure. 107 to display the information.

108 Section 3: Labor and Wages Four noncompeting labor grades are unskilled labor, semiskilled labor, skilled labor, and professional labor. Workers usually find it difficult to move to a higher income group because of the cost of education and training, the lack of opportunities for education and training, and lack of individual initiative. The traditional theory of wage determination uses the market forces of supply and demand to explain wage rates; the theory of negotiated wages argues that the relative strength of a union is a factor; signaling theory argues that certificates and diplomas are signals of ability. 108 to display the information.

109 Section 3: Labor and Wages (cont.) Wages also differ because of labor mobility, the cost of living, and attractiveness of work locations. 109

110 Section 4: Employment Trends and Issues Union membership is declining because of antiunion activities by firms, labor force additions that have little loyalty to labor, and unions that have priced themselves out of some markets. Corrective measures include anti-discrimination laws, the principle of comparable worth, and setaside contracts. Part-time jobs are increasing, providing flexible, low cost options to employers. The minimum wage has lost much of its purchasing power because of inflation. It is also falling behind when measured as a percent of the average manufacturing wage. 110 to display the information.

111 Click the mouse button to return to the Contents slide.

112 Identifying Key Terms Classify each of the terms below as pro-union, antiunion, or neither. 1. boycott 10. seizure pro-union neither 2. closed shop 11. injunction pro-union neither 3. company union 12. picket antiunion pro-union 4. labor mobility 13. right-to-work law neither antiunion 5. fact-finding 14. agency shop neither neither 6. giveback 15. strike antiunion pro-union 7. grievance procedure 16. two-tier wage system neither antiunion 8. lockout 17. arbitration antiunion neither 9. modified union shop 18. mediation neither neither 112 to display the answer. The Chapter Assessment is on pages

113 Reviewing the Facts Describe current union influence in terms of membership and workers represented by unions. Less then 14.5 percent of employed wage and salary workers belong to unions; a further 1.7 percent of nonunion members are represented in collective bargaining; total of nearly 18.1 million workers. 113 to display the answer.

114 Reviewing the Facts (cont.) Compare the two types of unions in the post-civil War period. industrial: represented all workers in an industry; trade or craft: represented skilled workers who performed same kind of job 114 to display the answer.

115 Reviewing the Facts (cont.) Describe the advances made by unions during the Great Depression. workers united; leaders renewed efforts; federal legislation increased power of unions 115 to display the answer.

116 Reviewing the Facts (cont.) Outline the progress of unions since the end of World War II. Unions have made limited progress, membership has dwindled, and some legislation has limited the power of unions. 116 to display the answer.

117 Reviewing the Facts (cont.) Describe the four types of union arrangements. closed shop, union shop, modified union shop, agency shop; descriptions found on pages of your textbook 117 to display the answer.

118 Reviewing the Facts (cont.) Explain five approaches to resolving a deadlock that may occur between a union and a company s management. mediation, arbitration, fact-finding, injunction, seizure; descriptions found on pages of your textbook 118 to display the answer.

119 Reviewing the Facts (cont.) Explain the differences between the four major categories of noncompeting labor. differences between unskilled, semiskilled, skilled, professional found on pages of your textbook 119 to display the answer.

120 Reviewing the Facts (cont.) Explain why it is so difficult for workers to move from one category of labor to another. cost of training and education, lack of opportunity, and lack of initiative 120 to display the answer.

121 Reviewing the Facts (cont.) Compare the three theories of wage determination. traditional: supply and demand for a worker s skills and services determine the wage or salary; negotiated wages: organized labor s bargaining strength helps determine wages; signaling theory: employers are willing to pay more for people with certificates, diplomas, degrees 121 to display the answer.

122 Reviewing the Facts (cont.) Discuss the reasons for regional wage differences. labor mobility, cost of living differences, attractiveness of location 122 to display the answer.

123 Reviewing the Facts (cont.) Explain why unions have lost members, as well as influence, in recent years. Many employers have kept unions out; additions to labor force have little loyalty to organized labor; unions are victims of their own success. 123 to display the answer.

124 Reviewing the Facts (cont.) Describe two corrective measures being taken to close the income gap between men and women workers. comparable worth: people should receive equal pay for work that is different from, but just as demanding as, other work; set-aside contracts: guaranteed contracts reserved for targeted groups 124 to display the answer.

125 Reviewing the Facts (cont.) Explain the popularity of part-time employment. It enables employers to pay part-time employees less and offer them few or no benefits; flexibility of part-time workers hours enables employers to fill shifts at odd hours. 125 to display the answer.

126 Reviewing the Facts (cont.) Identify three ways to evaluate the minimum wage. in current dollars, in constant dollars, and as a percentage of average manufacturing wage 126 to display the answer.

127 Thinking Critically Making Generalizations Unions generally argue that the best interests of workers can be served when employees are members of a union. Do you agree or disagree with this statement? Defend your answer. Answers will vary. 127 to display the answer.

128 Thinking Critically (cont.) Analyzing Information Some people believe that in today s economy, the theory of negotiated wages is more useful than the traditional theory of wage determination. Explain why you agree or disagree. Create webs like the ones on page 221 of your textbook to help you organize your answer. Answers will vary. 128 to display the answer.

129 Applying Economic Concepts Civilian Labor Force As you go to and from school, take note of the various occupations around you. List at least 10 occupations, then classify them according to the four major categories of labor. Answers will vary. 129 to display the answer.

130 Applying Economic Concepts (cont.) Minimum Wage Poll at least 10 people of various ages, asking for their opinions on the following statement: There should be no minimum wage. Compile the responses and present your findings to the class. Answers will vary. 130 to display the answer.

131 Opponents of the minimum wage believe that if the minimum wage were abolished: (a) wages for unskilled workers would rise and employment would fall. (b) wages for unskilled workers would fall and employment would rise. (c) wages for unskilled workers rise and employment would rise. (d) wages for unskilled workers would fall and employment would fall. (b) wages for unskilled workers would fall and employment would rise. 131 to display the answer.

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142 Use library resources to develop a statistical report on labor in the United States. Use charts and graphs to illustrate topics such as changes in the labor force, average wages over the years, union membership, and so on.

143 Explore online information about the topics introduced in this chapter. Click on the Connect button to launch your browser and go to the Economics: Principles and Practices Web site. At this site, you will find interactive activities, current events information, and Web sites correlated with the chapters and units in the textbook. When you finish exploring, exit the browser program to return to this presentation. If you experience difficulty connecting to the Web site, manually launch your Web browser and go to principles2005/index.php

144 Explore online information about the topics introduced in this chapter. Click on the Connect button to launch your browser and go to the BusinessWeek Web site. At this site, you will find up-to-date information dealing with all aspects of economics. When you finish exploring, exit the browser program to return to this presentation. If you experience difficulty connecting to the Web site, manually launch your Web browser and go to

145 Personal Income Personal income is a measure of income that is published by the Department of Commerce. It represents the total income that consumers receive, including most of the national income earned in the production of gross domestic product. It measures wages, salaries and other income sources, including rental income, government subsidy payments, interest income, and dividend income.

146 International Unions Many trade unions have regional organizations on various continents. In addition, the International Labor Organization (ILO), a branch of the United Nations, has a mission to promote and realize standards, fundamental principles, and rights at work. It also has training centers for employers and potential employees.

147 Percent of Income Spent on Food Some farmers raise cash crops products they grow in large quantities to be sold. Cash crops include sugar, bananas, and soybeans. Farmers receive money for these crops, but must buy much of their own food. Other farmers are subsistence farmers, who grow food for themselves and sometimes sell a small amount to buy other things. There is no good way to figure out the costs of food to subsistence farmers or to people who grow food in their own garden plots.

148 Reverse Brain Drain For decades, highly skilled workers in India, Caribbean nations, and other countries have not found work in their own lands. They have migrated to the United States and other countries that need individuals trained in science, technology, and computers. This has resulted in brain drain, the loss of skilled workers. Some countries are making efforts to stop the loss of educated workers. Thailand, for example, has started project Reverse Brain Drain (RBD) to create and attract more high-tech industry in order to keep their skilled workers.

149 In 2001, the median income for women 15 years and older was $16,614 compared to $29,101 for men, or about 57 cents for each dollar a man earned. Women with a bachelor s degree or more had a median income of $30,973, higher than the median income for all men, but considerably lower than the $49,985 for men with at least a bachelor s degree. Women with at least a bachelor s degree earned about 62 cents for each dollar a man in this category earned.

150 Online Job Searches The Electronic Office Click on a hyperlink to choose that topic.

151 Online Job Searches People with access to the Internet can search for jobs online. Some public libraries make computers available for people who don t have Internet access. There are increasing numbers of national and local Web sites for a wide variety of jobs. Internet searches enable job seekers to have access to a variety of job opportunities.

152 The Electronic Office Job listings on the Internet sometimes involve work for people with home offices. Often a person can work for a company in another city and receive assignments and send completed work by . The availability of such jobs has created a national and sometimes international workplace.

153 The Disabled and the Marketplace The passage of the Americans with Disabilities Act in 1990 was the first national civil rights bill for people with disabilities. The law requires all public places to be accessible. It also prohibits job discrimination against persons with physical or mental disabilities. Disputes over the meaning of the act s language have led to challenges in court. Read the BusinessWeek Newsclip article on page 210 of your textbook. This feature is found on page 210 of your textbook. Click the Speaker button to listen to an audio introduction. Continued on next slide.

154 The Disabled and the Marketplace Analyzing Information How has the government attempted to reduce the effect of discrimination against disabled workers? through passage of the Americans with Disabilities Act in 1990, which prohibits job discrimination against persons with physical or mental disabilities to display the answer. This feature is found on page 210 of your textbook. Continued on next slide.

155 The Disabled and the Marketplace Drawing Conclusions Have these efforts changed societal values towards the disabled? Answers will vary. to display the answer. This feature is found on page 210 of your textbook.

156 Economics and You Video 14: The American Labor Force After viewing The American Labor Force, you should be able to: Differentiate among the major categories of workers. Describe how unions attempt to increase their members wages and improve their working conditions. Explain how a strike affects both workers and their employees. to display the information. Continued on next slide.

157 Economics and You Video 14: The American Labor Force Click inside the box to play the preview. Side 2 Disc 1 Chapter 14 Click the Videodisc button anytime throughout this section to play the complete video if you have a videodisc player attached to your computer. Click the Forward button to view the discussion questions and other related slides. Continued on next slide.

158 Economics and You Video 14: The American Labor Force Why did unions become popular in the 19th century? They fought for safer working conditions, shorter working hours, and such benefits as paid health insurance and vacations. Side 2 Disc 1 Chapter 14 to display the answer.

159 Evaluating Primary and Secondary Sources Primary sources are original records of events made by people who witnessed them. They include letters, journals, legal documents, drawings, photographs, and artifacts. Secondary sources are documents created after an event occurred. They pull together information from many sources and provide an overview of events. Continued on next slide. This feature is found on page 199 of your textbook.

160 Learning the Skill Evaluating Primary and Secondary Sources To interpret primary and secondary sources, follow these steps: Identify the author of the document. Identify when and where the document was written. Read the document for its content. Identify the author s opinions and biases. Determine what kind of information the document provides and what is missing. to display the information. This feature is found on page 199 of your textbook. Continued on next slide.

161 Practicing the Skill Evaluating Primary and Secondary Sources Read the excerpts on page 199 of your textbook, then answer the questions on the following slides. This feature is found on page 199 of your textbook. Continued on next slide.

162 Evaluating Primary and Secondary Sources When was this document published? June 7, 1999 to display the answer. This feature is found on page 199 of your textbook. Continued on next slide.

163 Evaluating Primary and Secondary Sources What was the general feeling of the person who wrote this document? concern for the dropping wages of lowskilled immigrants to display the answer. This feature is found on page 199 of your textbook. Continued on next slide.

164 Evaluating Primary and Secondary Sources What economic trend is the writer describing? Is information missing from this passage? The writer is describing how a surplus of workers is driving their wages down. Yes, it is an excerpt from an article, not the entire article. to display the answer. This feature is found on page 199 of your textbook.

165 Click a picture to learn more about John L. Lewis or Cesar Chavez. Be prepared to answer the questions that appear on the next two slides. John L. Lewis Cesar Chavez Continued on next slide. This feature is found on page 204 of your textbook.

166 Making Comparisons What similarities are there between Lewis and Chavez? both were successful labor leaders, both founded or helped to found a union, both devoted themselves to the betterment of the common worker, both grew up in poor working families, and both men had little education to display the answer. This feature is found on page 204 of your textbook. Continued on next slide.

167 For Further Research Find out how a clash between Lewis and President Harry Truman led to a government seizure of mines in Write a newspaper article about the event. Answers will vary. to display the answer. This feature is found on page 204 of your textbook.

168 End of Custom Shows WARNING! Do Not Remove This slide is intentionally blank and is set to auto-advance to end custom shows and return to the main presentation.

169 Click the mouse button to return to the Contents slide.