The author tries to examine the theory of labor supply. This theory provides the analysis of the basic factors that determine whether a person is willing to offer labor force, and if so, the number of hours one can prefer to spend while working. The author has also tried to consider different pay schemes and maintenance programs that may influence a person in making the decision to offer labor services. The author has considered the key determinants of the total amount of labor supplied. Qualitative dimension to labor supply has been expounded extensively in the author’s work, giving the reasons why investing in human capital and rationale behind individuals investing in different quantities of human capital.
The author has examined the demand side of the labor by consistently deriving the short run labor demand and illustrating how the curves differ between the firm that is selling its goods competitively and the one does not. The wage of elasticity has also been explored in terms of long-run demand curve by the author of the article. Labor demand and labor supply have been combined to demonstrate how equilibrium wage and level of employment established.
The author recognizes that compensation to the workers entails the entire range of fringe benefits such as sick leave, paid vacations, health insurance, and many others. In this case, the author discusses various compensation packages that may look attractive to different workers. More importantly, the article has offer explanation on how pay schemes might be developed to enhance workers’ efficiency and productivity. The author has gone a notch higher to explore the wage structure and the main reasons why workers receive different wages.
The author has continued to elaborate the labor market by the labor movement in facilitating economic efficiency. Similarly, the author has examined the impacts of the various real world factors on the determination of wage and operation of the labor market. Some of the real world factors that have been identified by the author include discriminations, labor unions, and government. Lastly, the author has explored the macroeconomic aspects and outcome of the labor market.
Generally, the author's discussion in this articles falls in between microeconomics and microeconomic aspects of labor. The microeconomic aspects have laid emphasis on the determinants of labor supply and demand and how labor supply and labor demand mingle to determine employment and wage rates in different labor markets. On the other hand, the microeconomics emphasizes on aggregate aspects of the labor market.
Central Question of the study
What are the microeconomic and macroeconomic aspects of labor? The author has provided each and every fine details of microeconomics and macroeconomic aspects of the labor.
Positive Impression Created by Study
It is impressively to learn that all factors affecting labor as well as all other aspects related to it have been addressed. The author has exhaustively explained how labor affects efficiency and productivity and how it impacts economic growth.
Limitation
The author has failed to address how other factors of production such as capital, rents, and land can influence efficiency and productivity in the economy. The author believes that labor is only core aspects of microeconomics and macroeconomics that impacts the growth of the economy, which is not the case.
What seems Unique in the Article?
The article entails both quantitative and qualitative study.For instance, all the findings have been represented graphically to help in illustration of all economic aspects of labor as well as all the factors that affect it.
An annotation
Sassen-Koob, Saskia. "The new labor demand in global cities." (2017): 139-71
The author has discussed the economic growth that has been experienced over the last decades resulting in rising of the concentration of benefits of economic growth. The author has explained that the rise of demand for labor demand in global towns has been caused by decentralization technological transformation and transnationalization of the economy which has experienced in such cities.
This article contrasts the Contemporary Labor Economics by McConnell, Campbell, Stanley Brue, "David Macpherson article which touches on all the aspects of labor, be it microeconomic or macroeconomics.
Lesson Learnt
(a) Current or future Employer
Employers can increase the labor supply by offering different appealing compensation packages to attract more workers to provide their workforce.
(b) Future Job Seeker or Employee
As employee one should join the labor union to increase their bargaining power towards realizing wage increase by the employer.
