US Labor Market

US Labor Market

Introduction

The purpose of this chapter is to explore the unique nature of labor markets and to consider how these markets will evolve in response to changes in the nature of the work people do over time. Use of labor, like any economic resource, has to be considered carefully in light of productivity and opportunity costs. Though many factors affect this decision-making process, in most cases labor is allocated by market forces that determine wages and employment.

Discussion

Median earnings/wages

In the United States, the federal government established mandatory minimum wages through the Fair Labor Standards Act in 1938. In ...