LABRST 1C03 Lecture Notes - Lecture 8: Human Capital, Market Clearing, Monopsony

• School: McMaster University
• Department: Labour Studies
• Course: LABRST 1C03
• Professor: Stephanie Ross

Document Summary

Structural conditions shaping our position in the labour market. Human mental and physical capacities exercised when creating the use of things we need to survive. We live in a society when labour has turned into something that can be bought and sold. Workers are legally separated from the means of production and most complete in a labour market for jobs. Workers" capacity to work is bought and sold on a labour market for a price - the wage. Wage relation between workers and employers is set up. The liberal / neoclassical view of the labour market: Labour is a factor of production like all others. Labour supply and demand is workers responding to work, determined by price signals, namely the wage. Wage improvements lead workers to increase their supply of labour. Wage improvements lead employees to decrease their demands for labour and increases their demand for labour substitutes, ex.