6- The labour market

Bilateral monopoly

Market in which there is a single seller and a single buyer.

Human capital

The economic value of an individual's skills, experience, training, etc.

Labour exploitation

Employers benefiting from treating employees unfairly.

Marginal physical product (MPP)

Additional output each unit of labour can produce.

Marginal productivity theory

Theory stating demand for labour is derived from MRP.

Marginal revenue productivity (MRP)

Additional revenue derived per extra unit of labour.

Monopsony power

The ability to set prices based on bargaining power.

National minimum wage (NMW)

The legal minimum hourly wage set by the government. This is age dependent.

Negative discrimination

When employers undervalue the marginal revenue productivity of a worker.

Positive discrimination

When employers overvalue the marginal revenue productivity of a worker.

Trade union

Organisation within or outside a firm campaigning for the rights of the workers.

Trade union wage gap

The differences in wages between those in a trade union and those not in a trade union; an indicator of trade union power.

Wage differentials

Differences in wages of different groups of workers, or workers in the same occupation.

Wage discrimination

Paying an employee lower wages because of their race, gender, religion, disability, sexual orientation, or some other protected characteristic.