Labour Markets

Wage determination

Natural Sciences Manager

No. 10

They supervise the work of other scientists such as agriculturalists, chemists, physicist, and so on. The persons of this profession are generally employed in the fields of R&D.
Many start their own consultancies The average salary paid to any natural science manager is $97,560.

Source Top 10

MARKETING MANAGER

No. 9 Marketing manager, one of the key positions in modern organizations,. The average salary paid to any marketing manager in the world is $100,020.

No. 8

Computer and Information Systems Manager

Companies regard their job as highly technical and pay them accordingly.
The average salary paid in this field is currently $100,110.

No. 7
Air traffic controllers are employed exclusively by the local administrative bodies. The average paid salary to this post in the world is $100,430.

AIR TRAFFIC CONTROLLER

No 6
The law firms are paying very good salaries to the efficient lawyers.
The average paid salary in this field is $110,590.

LAWYER

No. 5
Senior dental surgeons have little practical work to do but their incomes are increasing considerably with the each passing year.
The average salary a dental surgeon is getting is $132,660.

DENTIST

No. 4

AIRLINE PILOT

It is not very easy to become a pilot, as it requires a lot of hard work and technical study along with huge investment in monetary terms. The average salary to airline pilot is $134,090.

No. 3

ENGINEERING MANAGER

Engineering mangers job is to perform the task of research, designing, and production activities. The average paid salary to an engineering manager is $140,210.

No. 2

CHIEF EXECUTIVE OFFICERS

Owing to the level of responsibility and burden they bear, they are highly paid particularly in multinational organizations. A CEO is responsible to the board of directors and major share holders of the firm. The average salary paid to this position is $140,880

Sheryl Sandberg, chief operating officer of Facebook, got paid $30.87 million last year, making her the most highly paid employee at the company in 2011.

No. 1

SURGEON

The highest salary paid to surgeon is $181,850.

Surgery is average paying profession so if you are aiming at getting high pay then you should strive for surgery as it is the highest paying job in 2013.

Directors and CEOs of large companies Police Officers Air traffic controllers Solicitors Train drivers Teachers Veterinarians Crane drivers Midwives Nurses Farmers Bus and coach drivers Caretakers Cleaners, domestics Waiters, waitresses

112,157 58,746 55,352 44,552 42,527 35,166 32,970 30,575 30,190 26,614 22,561 21,563 16,377 6,502 5,660

25796110 13511580 12730960 10246960 9781210 8088180 7583100 7032250 6943700 6121220 5189030 4959490 3766710 1495460 1301800

In Groups of 2 - 3
Decide on as many factors as possible that would influence the wage someone would earn.

Factors influencing wages

Status attached to the job Discrimination Race Gender Monopsony a dominant buyer in the market Sector public or private Trade Union power or influence Length of career Risk or danger involved Social or unsocial hours Shift patterns Productivity

A labour market:

Sall workers
in the market

Hourly wage

Wm

Dall firms
in the market

Backward Bending Supply Curve of Hourly labour. Income Effect wage

SL

W2

W2

W1

Leisure time is a normal good, and as the Y so does the D for the normal good. Leisure. Substitution Effect i.e. as wages the cost of Leisure , therefore Leisure time will be substituted for work time. Hours of labour time supplied

L3

L1

L2

http://www.economicportal.ru/img/ facts/spros-truda3.jpg

Market-determined Wage rates and Employment

The demand for labour: marginal productivity theory
the profit-maximising approach measuring the marginal cost and revenue of labour

marginal cost of labour (MCL) the marginal revenue product of labour (MRPL)

Marginal Revenue Product

= Marginal Revenue Product the revenue generated from the additional worker from his/her output.

Marginal Revenue Product

Marginal Revenue Product

Marginal Revenue Product

Marginal Revenue Product

Marginal Revenue Product x

Diminishing returns set in here
Output

MRP
O

Q of labour

Marginal Revenue Product

The profit-maximising level of employment

Wm

MCL= W

MRPL = MPPL Pgood

MRPL
O

Q of labour

Qe

Market-determined Wage rates and Employment

The demand for labour: marginal productivity theory

the profit-maximising approach

measuring the marginal cost and revenue of labour marginal cost of labour (MCL) i.e. wages and other costs the marginal revenue product of labour (MRPL) the profit-maximising level of employment

Deriving the firms demand curve for labour

a
W1 W2 W3

MCL1 b MCL2 c

MCL3

Profits maximised where MRPL = MCL

MRPL
O Q1 Q of labour Q2 Q3

Deriving the firms demand curve for labour

a
W1 W2 W3

b c

MCL1

MCL2
MCL3

The MRPL curve traces out the demand curve

D
O Q1 Q of labour Q2 Q3

Wages and a firm's surplus over wages

Surplus for firm

W MCL = W

Wages
MRPL
O

Q of labour

Qe

Wages

Economic Rent i.e. the amount earned over transfer earnings. SL

Wage

Economic Rent
Transfer earnings 0

Transfer Earnings the earnings needed to keep you in a job.

DL

In Pairs
Illustrate on your boards the effect of setting a minimum wage over the equilibrium minimum wage.

(students dont write) Show sr true, but in lr maybe not true

Minimum Wages in Different Countries

Annual Country Azerbaijan Belarus Estonia Georgia Kazakhstan Kygyzstan Tajikistan Turkmenistan Ukraine UK USA US $ 1,420 3,365 5,333 817 1,309 156 208 1680 1,727 19,833 15,080 360 Annual PPP 2,078 8,636 7,111 1,394 1,510 348 519 2,892 3,441 18,083[89] 15,080[13] 937 Hourly (US$)[4] 0.68 1.62 2.56 0.39 0.63 0.08 0.1 % GDP (now GDI) 21 58 32 26 12 15 22 40 48 51 31 17 from 2011 2013 2013 2011 2011 2011 2011 2011 2013 2012 2009 2011

0.83 9.98 7.25

Trends in Kazakhstans Average Wages 2011 - 2013

In pairs
Decide on the advantages and the disadvantages of the government setting a minimum wage