labor

Examples of labor in the following topics:

• Onset of Labor

  • Prodromal labor, which includes the latent phase of labor, marks the initial stages of parturition.
  • Pre-labor, also called prodromal labor, consists of the early contractions and labor signs before actual labor starts.
  • It is the body's preparation for real labor.
  • Prodromal labor, often misnamed "false labor", begins much as traditional labor but does not progress to the birth of the baby.
  • The term "false labor" is sometimes used to describe a cluster of Braxton Hicks contractions that are mistaken for real labor.

• Deriving the Labor Demand Curve

  • Firms will demand labor until the marginal revenue product of labor is equal to the wage rate.
  • Firms demand labor and an input to production.
  • The cost of labor to a firm is called the wage rate.
  • The additional revenue generated by hiring one more unit of labor is the marginal revenue product of labor (MRPL).
  • For example, is capital becomes more expensive relative to labor, the demand for labor will increase as firms seek to substitute labor for capital.

• Labor Conditions

• Child Labor

• Organized Labor

• The Wage Rate

  • The wage rate is determined by the intersection of supply of and demand for labor.
  • When labor is an input to production, firms hire workers.
  • The marginal benefit of hiring an additional unit of labor is called the marginal product of labor: it is the additional revenue generated from the last unit of labor.
  • Thus, shifts in the demand for labor are a function of changes in the marginal product of labor.
  • In the long run, the supply of labor is a function of the population.

• Marginal Revenue Productivity and Wages

  • When the supply of labor increases the equilibrium price falls, and when the demand for labor increases the equilibrium price rises.
  • In the long run the supply of labor is a simple function of the size of the population, so in order to understand changes in wage rates we focus on the demand for labor.
  • To determine demand in the labor market we must find the marginal revenue product of labor (MRPL), which is based on the marginal productivity of labor (MPL) and the price of output.
  • Conceptually, the MRPL represents the additional revenue that the firm can generate by adding one additional unit of labor (recall that MPL is the additional output from the additional unit of labor).
  • Thus, workers earn a wage equal to the marginal revenue product of their labor.

• Changes in Equilibrium for Shifts in Market Supply and Market Demand

  • A shift in the supply or demand of labor will cause a change in the market equilibrium.
  • Labour supply curves are derived from the 'labor-leisure' trade-off.
  • Considering this tradeoff, workers collectively offer a set of labor to the market which economists call the supply of labor.
  • We have already seen that the demand for labor is based on the marginal product of labor and the price of output.
  • All of the above may cause the demand for labor to shift and change the equilibrium quantity and price of labor.

• Conditions of Equilibrium

  • Equilibrium in the labor market requires that the marginal revenue product of labor is equal to the wage rate, and that MPL/PL=MPK/PK.
  • The labor market differs somewhat from the market for goods and services because labor demand is a derived demand; labor is not desired for its own sake but rather because it aids in producing output.
  • The MRPL represents the additional revenue that a firm can expect to gain from employing one additional unit of labor - it is the marginal benefit to the firm from labor.
  • Under the above assumptions, the MRPL is decreasing as the quantity of labor increases, and firms can increase profit by hiring more labor if the MRPL is greater than the marginal cost of that additional unit of labor - the wage rate.
  • The curved line represents the falling marginal product of labor, the y-axis is the marginal product/wage rate, and the x-axis is the quantity of labor.

• Importance of Division of Labor

  • Division of labor is the specialization of cooperative labor in specific, circumscribed tasks and roles.
  • An example of the division of labor in the workplace is how workers at a candy factory have very particular tasks.
  • Now that labor has been specialized not just nationally but globally, people often wonder what type of division of labor would be the most beautiful, fair, ideal, and efficient.
  • A highly specialized division of labor is often used in factories, such as this Chinese silk factory.
  • Examine how the division of labor can lead to alienation and less satisfaction in the workforce