Labour market outcomes

What are labour market outcomes?

the wages and working conditions different people recieve when participating in the labour market

What is nominal wage?

pay received by employees in dollar terms for their contribution to the production process, not adjusted for inflations

What is real wage?

measure of the actual purchasing power of money wages

What is enterprise bargaiging?

refers to negotiations between employees about pay and work conditions at the level of the individual firms

What is income distribution?

refers to the way in which an economy’s income is spread among the members of different social and socio-economic groups

How does skill level influence difference in wage between different occupations?

higher skilled occupation command higher wages. Workers in jobs requiring greater education, longer training periods, and specialised knowledge earn significantly more

How do working conditions influence difference in wage between different occupations?

jobs that are dangerous, dirty, or involve irregular hours attract a compensating wage differential

How does occupational mobility influence difference in wage between different occupations?

when occupational mobility is high, the workers can move easily between occupations, the supply of labour is always likely high.

How does bargaining power influence difference in wage between different occupations?

when wages grow faster than productivity, real labour costs rise and cut into profits, promoting employees to replace workers with technology, causing the underlying tension with bargainning power

How does experience and qualifications influence difference in wage between the same occupations?

more experienced workers are generally considered more valuable and are paid more

How does geographic mobility influence difference in wage between the same occupations?

isolated locations have higher wage rates

How does labour productivity influence difference in wage between the same occupations?

more productive workers earn higher wages

How does capacity of the firm to pay influence difference in wage between the same occupations?

the more profitable a firm is the greater capacity they have to pay higher wage

How does age influence difference in wage between the same occupations?

income generally peaks between the ages of 35-44, lowest for 15-19

How does gender influence difference in wage between the same occupations?

Despite equal pay for equal work, men earn on average more than women

How does migrant status and cultural background influence difference in wage between the same occupations?

median income of workers with a migrant background make less than the national average. Recent migrants tend to earn less than longer settled migrants

How does being Indigenous Australians influence difference in wage between the same occupations?

they face a significant wage disadvantage

What is enterprise bargaining?

refers to negotiations between employers and employees about pay and work conditions at the level of the individual firm

What is income distributions?

refers to the way in which an economy’s income is spread among the members of different social and socio-economic groups

What are non-wage outcomes?

the benefits that many employees receive in addition to their ordinary pay over time

What are some examples of non-wage outcomes?

salary packaging, bonus cash payments, flexibility in work patterns

What is cyclical unemployment?

caused by a downturn in the business cycle. Falling demand for goods and services results in firms reducing production, which decreases demand for labour. 

What is structural unemployment?

Occurs because of structural changes in the economy caused by technological changes or changes in the pattern of demand for goods and services.

What is long-term unemployment?

unemployed for a period of 12 months or more. Which can be very difficult to reduce as they become less desired by employers, who often prefer skills that are more up to date.

What is seasonal unemployment?

occurs due to the seasonal nature of some jobs

What is frictional unemployment?

occurs as people change jobs moving from one to another

What is hard core unemployment?

Individuals who are considered unemployable as they have been out of work for so long because of a personal characteristic

What is hidden unemployment?

those who are discouraged and have given up looking for work and or have gone back to school

What is underemployment?

those who have part-time jobs or casual hours jobs but would like to work more hours