Chapter 3 : labour markets and jobs: opportunities and inequality
Q 1: why do high school teachers earn more than retail salesclerks, or engineers more than construction
extra education = higher skills = higher pay
Q2: why are the children of middle class parents much more likely to go to university, compared with
the children of less affluent Canadians?
Q3: why are women, the disabled, aboriginal Canadian, and members of visible minority groups
overrepresented in less rewarding job?
Labour Market : the arena in which employers seek to purchase labour from potential employees who
themselves are seeking jobs suitable to their education, experience and preferences.
Workers exchange their skills, knowledge and loyalty in return for status, career opportunities and other
who has the good jobs?
how did they get them?
how do they manage to keep them? 2 alternating approaches to answer labour market outcomes.
-human capital model -labour market segmentation perspective
Human capital theory- jobs that require more effort, training and skills receive greater rewards.
Labour market does not always operate on better education = better job, there are inequalities. Labour
market brings up questions about social stratification (group, caste, class) and class structure.
Good jobs and bad jobs – deciding if a job is good or bad is not general
Individuals compare the rewards a job would provides against their own needs, preferences(what they
like), and ambitions(future goals) and against the personal costs of working in such a job
(transportation). To most, job rewards are important because they want to keep or improve their
standard way of living. (how much it pays, benefits, fulltime/permanent, safety) Nonstandard jobs: temporary/ part time etc. Some people prefer nonstandard jobs because of
education or personal /family reasons. There are some nonstandard jobs that pay very well (business
consultants). There is minority in nonstandard jobs that pay very well. These would be classified as
Job with few risks to personal health and safety = better job
Paid employees (excluding the self employed) incomes in the service industry are lower compared to
income in the goods producing industry. Example 2008 annual average weekly earning (including
overtime) $1528 in mining and oil $1015 in construction and $950 in manufacturing.
Medical specialists>judges>lawyers>dentists>hotel clerks>pet groomers>cashiers >hair stylists
Higher earnings due to higher education and due to supply and demand factors in a labour market that