Warm-Up

What are the four types of labor? Read pg 205-209 Define theory of negotiated wages and

signaling theory. Describe the three different approaches

to wage determination.

Critical Thinking

What type of jobs are the most important to our civilization? How much are these workers paid? Why are they paid these wages?

Standard: SSEF6b- Explain the significance of investment in education, training, and skill development.

Notes: Labor and wages

Economic Mystery

Why do nurses , police officers, firefighters and teachers receive salaries far short of the amounts paid to professional athletes? Do you believe this okay morally? Are our values wrong? Why or why not.

Labor

Civilian Labor force: men and women 16 years of age and over who are either working or looking for a job

4 types: 1. Unskilled labor

2. Semiskilled labor3. Skilled labor

4. Professional labor

Unskilled labor

Those who work primarily with their hands because they lack training and skills required for other tasks.

Semiskilled Worker

Workers with enough skills and mechanical abilities to operate machines that require an amount of training

Skilled labor

Workers who are able to operate complex equipment and can perform tasks with little supervision

Professional labor

Individuals with the highest level of knowledge-based education and managerial skills

Level of Education required

Professional Labor

Skilled Labor

Semiskilled Labor

Unskilled

Labor

Noncompeting Labor Grades Broad categories of labor do not

compete with each other because of experience, training, education, and other human capital investments

Wage rate

A standard amount of pay given for work performed.

Differences in wages depends on : 1. supply and demand2. influence of unions

Homework tonight

What job do you want? What level of education is required? Which labor category does it fit under?