1 / 10

Understanding Market Interventions: Price Ceilings and Floors in the Labor Market

This chapter discusses the effects of price ceilings and price floors, particularly in the context of the labor market and essential goods like gasoline and medical care. It examines the implications of minimum wage laws and their impact on employment, inflation-adjusted wages, and labor dynamics in the U.S. The chapter also explores the roles of labor unions from both anti-union and pro-union perspectives, and critiques the varying degrees of government intervention based on libertarian philosophy.

ayita
Télécharger la présentation

Understanding Market Interventions: Price Ceilings and Floors in the Labor Market

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 4. Market Interventions Link to syllabus

  2. Figure 4.2 p. 105. The Effects of a Price Ceiling Other standard examples are gasoline, medical care, textbooks

  3. Figure 4.5 p. 110. The Effects of a Price Floor Standard example is minimum wage. Graph is repeated as Figure 8-8 p. 223.

  4. Figure 8-8 p. 209. Effect of a Minimum Wage on the Labor Market

  5. US has low minimum wages! P. 105 2nd edition, for 2005 or so.

  6. US continues to have low minimum wage in 2011! P.113

  7. Minimum Wage:Nominal and Inflation Adjusted

  8. There is a similar analysis for quota restrictions on taxis, on pp. 116-18 Conclusion: feel sorry for people who ride in taxis in New York. .

  9. Application to labor unions. The argument is made that labor unions function by artificially raising wages, by restricting access of workers to certain jobs (i.e. union shop). This might be considered the anti-union view. There is also a pro-union view, which evaluates labor unions as defenders of workers’ rights to a safe workplace, non- discrimination, and see unions as a means of helping workers through education.

  10. Libertarian Philosophy No government intervention, at all. mt believes that in the US one cannot find politicians who consistently support a libertarian position, on issues such as: • Gun Control • Abortion • Child Pornography • ‘Illegal’ drugs • Immigration

More Related