Different types of labour

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Different types of labour
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Contents

• Introduction
• Productivity differences
• Problem of discrimination
• Role of trade unions
• Brief summary

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What will we concern?

• Differences in workers by
• - sex
• - race
• - age
• - experience education
• - training innate abilities
• - belonging to a trade union

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Introductory information

• Hourly earnings in pounds in UK, 2000

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Productivity differences

• PAY DEPENDS ON
• - education training
• - personal characteristic
• - experience
• - job character

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Productivity differences

• Why workers have different productivity_levels
• they acquired them
• they were born with them

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Productivity differences

• HUMAN CAPITAL-
• is the stock of expertise accumulated by a
  worker to enhance future productivity

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Productivity differences

• Continue education or start working?
• BENEFITS
• - stream of future extra wages
• - the pleasure of being a student
• COSTS
• - books and fees
• - money that could have been earned

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Benefits of investment in human capital extra
wages in Britain at age 33
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Age-earnings profiles by highest educational
attainment
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The market for highly educated workers
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Productivity differences

• SKILLS
• firm-specific skills
• general skills

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Productivity differences

• FIRM-SPECIFIC SKILLS
• raise a workers productivity only if he/she
  works for that particular firm
• GENERAL SKILLS
• enhance productivity in many jobs, not just the
  current one

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SUMMARY

• WHAT ONE SHOULD REMEMBER
• Differences in pay
• SKILLS as the most important source of wage
  differential
• Human capital
• Age-earning profiles
• Demand for educated workers