Chapter 5 Frictions in the Labor Market FIGURE

Chapter 5 Frictions in the Labor Market

FIGURE 5. 1 The Supply of Labor to Firm A: Worker Mobility Costs Increase the Slope of the Labor Supply Curve Facing Individual Employers Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 2

TABLE 5. 1 Labor Supply Schedule for a Hypothetical Firm Operating in a Monopsonistic Market Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 3

FIGURE 5. 2 A Graph of the Firm-Level Data in Table 5. 1 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 4

FIGURE 5. 3 Profit-Maximizing Employment and Wage Levels in a Firm Facing a Monopsonistic Labor Market Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 5

FIGURE 5. 4 The Monopsonistic Firm's Short-Run Response to a Leftward Shift in Labor Supply: Employment Falls and Wage Increases Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 6

FIGURE 5. 5 Minimum-Wage Effects under Monopsonistic Conditions: Both Wages and Employment Can Increase in the Short Run Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 7

TABLE 5. 2 Hours Devoted by Firms to Training a New Worker during First Three Months on Job, 1992 Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8

TABLE 5. 3 Employee Benefits as a Percentage of Total Compensation, 1999 (Average Yearly Cost in Parentheses) Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 9

FIGURE 5. 6 The Predicted Relationship between MEM/MEH and Overtime Hours Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 10

FIGURE 5. 7 Productivity and Wage Growth, First Two Years on Job, by Occupation and Initial Hours of Employer Training Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 11