Chapter 1 Introduction Introduction of Labor Economics What

Chapter 1 Introduction

Introduction of Labor Economics • • • What is the meaning of labor force participation (LFP) and unemployment? How does Thai government determine the minimum wage? What is the impact of FTA to Thai LFP? Is a labor union having bargaining power than an employer? Why does graduation from university have higher pay than graduation from poly-tech institution?

Labor Economics • • 1. Introduction to labor economics 2. Labor Supply 3. Labor Demand 4. Market Equilibrium 5. Human Capital 6. Wage Structure and Wage Differential 7. Labor Mobility

• • • 8. Labor Market Discrimination 9. Labor Unions 10. Incentive Pay and Contract 11. Unemployment 12. Globalization of Labor Market and Issues in Thailand’ s Labor Market

Positive and Normative • The positive economics identifies the answer by a fact without opinion or value judgment. • The normative economics will use the value judgment to answer the question in terms of “what should be? ”.

Relationship between Wages, Earnings, Compensation and Income

The Markets in which Firms Must Operate

Tools for Labor Economics • Graphic • Slope and Elasticity • Calculus, Partial Derivative, Comparative Static • Linear Regression, OLS, STATA • Basic Econometrics – Cross-sectional – Time Series – Panel