Chapter 13 Labor market

wage

price paid for labor

real wage

purchasing power of an hours work

Supply of labor

relationship between the price of labor and the quantity willingly supplied.huma

human capital

stock of useful skills and knowledge accumulated by people in education and training

Pure economic rent

the payment made to any factor over and above what it takes to get a given amount of that factor to be supplied.

Lorenz curve

graph of cumulative percent of the population/households against cumulative percent of income.

Gini coefficient

quantitative measure of inequality (shaded/triangle)

Social security

government public insurance program aimed at the elderly and disabled

Welfare

Income support for those below the poverty line