Knowra Labor market Labor market A labor market is the system through which workers offer labor and employers seek it in exchange for wages and other compensation. Its outcomes include employment, pay, and working conditions.
Labor supply : The amount of work people are willing and able to offer at different levels of compensation. Workers’ participation and desired hours determine how much labor employers can hire.
Unemployment : The condition of being without work while available for and actively seeking employment. Unemployment measures a central outcome of labor-market conditions.
Monopsony : A market structure in which a single buyer, or a few buyers, have substantial power over sellers. An employer with hiring power can hold wages below competitive levels.
Human capital : The knowledge, skills, abilities, and other attributes embodied in people that can contribute to productive activity. Differences in skills can affect workers’ productivity, pay, and job opportunities.
Labor demand : The amount of labor employers are willing and able to hire at different wage levels. Employers’ hiring decisions shape vacancies, employment, and wage offers.
Minimum wage : The legally mandated lowest wage employers may pay covered workers. Its effects depend on how wage floors interact with hiring and labor demand.
Perfect competition : An idealized market structure with many buyers and sellers, homogeneous goods, and free entry and exit. It is the benchmark behind the competitive labor-market model.
Wage inequality : The uneven distribution of wages among workers in an economy or labor market. Labor-market outcomes are a major source of differences in earned income.
Wage : Payment made to a worker for labor, commonly expressed as an hourly rate or salary. Wages are the central price coordinating workers’ offers and employers’ hiring.
Labor force participation rate : The share of a population that is employed or actively seeking employment. It distinguishes labor-market withdrawal from unemployment.
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