shift in demand for labor - 3 causes

1. changes in product quantity produced with labor

(ex: more $$ spent on health care increases demand for nurses)

2. changes in how output is produced

(ex: keeping costs low for higher profits by hiring many nurse aids, instead of many higher paid nurses)

3. government regulations

(ex: requiring nurses to perform some duties, rather than less skilled nurse's aid, yet restricting nurses from some duties)

shifts in labor supply - 2 causes

(the amount of people who want to work a certain job)

1. how the job is pervceived

2. government policies

(ex: decreases with high qualifications requirements for jobs, increases with reduced qualifications or gov. subsidised training programs)

Minimum Wage

(currently $7.25)

a price floor that set by the government that makes it illegal for an employer to pay less than a certain rate

Living Wage

higher minimum wage; full time annual salary above poverty line of $14.5k for family of 2

usary laws

laws that impose an upper limit on the intrest rate lenders can charge