Labor Market. Deindustrialization?. U.S. Manufacturing Employment Millions of Jobs. Manufacturing Wage Rate, 2005. Wages by Education in the U.S. Marginal Product of Labor. Firms employ workers to produce good and services.
U.S. Manufacturing Employment
Millions of Jobs
Manufacturing Wage Rate, 2005
MPN & w
w = MPN
Condition of profit maximization
Increase in A or k
nThe Supply of Labor
nShort-Run Labor Market Equilibrium(fix k)
Sharp oil price rise
Wages and Productivity
(Output per Worker) Across Countries
Over half of all employment is in small firms.
Source: Brian Headd, “The Characteristics of Small-Business Employees,” Monthly Labor Review, 2000.
2006Q2:-7.8 million jobs created - 7.3 million jobs destroyed - .5 million net change in number of jobs
Job creation: net employment change of establishments expanding employmentJob destruction: net employment change of establishments reducing employment
Job creation and destruction is significantly higher than net job creation.
Churning is the key to economic growth.
Source: John Haltiwanger, “New Ideas for Measuring Labor Productivity,” Census Brief, 1998.
Source: Bah El-hadj, The University of Auckland, “Structural Transformation in Developed and Developing Countries,” 2008.
nLabor Market and Wealth