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The Markets for Labor and Other Factors of Production Why Are the New York Mets Paying Carlos Beltran a $17 Million Salary? After studying this chapter, you should be able to: Explain how firms choose the profit-maximizing quantity of workers to employ. Explain how people choose the quantity of labor to supply. Explain how equilibrium wages are determined in labor markets. Use demand and supply analysis to explain why compensating differentials, discrimination, and labor unions cause wages to differ. Discuss the role personnel economics can play in helping firms deal with human resources issues. Show how equilibrium prices are determined in the markets for capital and natural resources. The Markets for Labor and Other Factors of Production The Demand for Labor The Demand for Labor The Demand for Labor The Demand for Labor Hiring Decisions by a Firm That Is a Price Maker The Demand for Labor The Supply of Labor The Supply of Labor Equilibrium in the Labor Market Equilibrium in the Labor Market Will Your Future Income Depend on Which Courses You Take in College? Equilibrium in the Labor Market Why Didn’t the Great Immigration Waves of the Early Twentieth Century Cause Wages to Fall? Explaining Differences in Wages Technology and the Earnings of “Superstars” Explaining Differences in Wages Explaining Differences in Wages Explaining Differences in Wages Explaining Differences in Wages Is “Comparable Worth” Legislation the Answer to Closing the Gap between Men’s and Women’s Pay? Explaining Differences in Wages Explaining Differences in Wages Explaining Differences in Wages Personnel Economics Raising Pay, Productivity, and Profits at Safelite AutoGlass Personnel Economics The Markets for Capital and Natural Resources The Markets for Capital and Natural Resources The Markets for Capital and Natural Resources Terps’ Coaches Have Big Incentives Compensating differentials Derived demand Economic discrimination Economic rent or pure rent Factors of production Human
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