Plan
1. Simple model demand for labor.
2. The effect of scale and the effect of substitution in demand for work.
3. Elasticity of demand for labor and the laws of derived demand.
4. Permanent costs and demand for labor.
Demand for workdetermined as the amount of labor that employers want to use in a given period of time for a certain rate wages. Demand for labor as a factor of production is a derivative in demand: work is required for use in the production of goods and services, and the decision on the volume of labor used is the opposite side of the decision on the volume of goods production.
Simple modelthe demand for work is based on the following prerequisites:
a) The target function of the company is the maximization of profits.
b) the behavior of the firm is described production function Two-factor type, factors - work and capital.
c) The company operates on the competitive market of goods and in the competitive market of labor.
(d) The costs of the firm for labor consist only from wages of workers.
In the short term, the company has a fixed amount of capital as a production factor and decides on the volume of use of only one factor - labor.
The production function can be represented as a function of only one production factor - labor:
Q \u003d f (l, k) or q \u003d f (l),
where q is the volume of production;
L is the work factor;
K is a factor in capital, which is mainly constant in a given period of time.
The maximum car product is equal to the limiting costs for the work of equal wages. Maximum profit is achieved when the utmost product of labor in kind is equal to the real wage. If the limit labor product exceeds the real wages, then the employer is beneficial to continue the employees until they are equal. If the limit labor product is less than the real wage, then the employer favorably dismiss some of the employees, that is, to reduce the amount of labor used to the level in which the limit product will be equal to the limiting costs of labor.
W.
Curve extreme product
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Demand for work
Fig. 2. Labor product limit and demand curve for labor
Thus, the amount of employed labor depending on the wage is determined through the limit product of labor, and the curve of demand for labor in the short-term period is equal to the limiting product curve.
In the long period, the amount of demand for labor is determined by the condition of equality of the relationship of the limit product of labor to the limiting costs of labor and the relationship of the limit product of capital for the limit costs of capital.
On the russian market Labor There is a bouquet of factors that are preserving the demand for labor.
v Protection of existing jobs. It's good for those who settled on them ("insiders"), but bad to modernize the economy, the creation of new jobs, innovative industries and productivity growth. As a result, the total employment is lower, and its quality is worse.
v Some believe that the steady increase in the minimum welfare almost the main road to universal well-being. Welfare is created by high labor productivity, and not election redistribution in favor of the least qualified part. work force. The centralized increase in the Unified Marota shifts the scale of salaries for all employees, and not only for low-paying. Express work, it reduces the cumulative demand for it. But "pay" for the minimum wage will not all and not immediately. First of all it concerns enterprises light industry and agriculturein which the share of labor in costs are large at zero or negative profitability and the problem southern Federal District.
v Migration. The expected replacement of the "cheap" labor of migrants "expensive" labor of Russians will reduce the overall demand for work and total number work places. Often the work of unqualified migrants is a supplement to the qualified work of Russians.
v Saving barriers to the creation and expansion of new enterprises, high corruption in the center and on the ground, passionate by state-owned monopolists to the detriment of the competition of private manufacturers, the ineffectiveness of the judicial system, the rise in price of the ruble and the growth of the efficient exchange rate, tightening and arbitrariness in the field of tax administration, attempts Solve the problem of low wages by administrative methods.
Property relationship is a kind of arena, which involves the action of the factors that fill in the real content of the functioning of the labor market mechanism, forming various specific situational velocities for the labor force and its proposals and, consequently, the defining effect on the scale, level, form, structure and Dynamics of unemployment.
The problem of the employment level of the country's working-age population and, consequently, the unemployment rate arises and exists in inseparable communication SO labor demandentering the labor market. Because of this, the analysis of the problem involves finding out the content of this concept.
The demand for labor (labor force) can be defined as the number of employees who are ready to hire an employer in this period for a certain salary rate. It should be noted that the demand for labor as a factor of production is derived in demand.
Employees are not needed by themselves, but to produce certain goods and services. The demand for labor is determined by a number of factors: the volume of production and its industry Structure, degree of labor intensity of production (the nature of the technologies used), the cost of labor, etc.
In quantitatively, the demand for labor reflects the volume and structure of needs in employees from enterprises and organizations different shapes Property acting as subjects of market economy, in order to fill vacant jobs (both liberated and newly created) in these production volumes and productivity level.
As already noted, the demand develops from among vacancies and posts of workers who are looking for the employer. When studying demand for labor, various indicators and demand characteristics can be applied. Common demand Characterized by the general availability and structure of jobs in a given country, effective demand - the number and structure of employed in the economy (the difference between the total demand and excessive employment).
Satisfied demand - This is a realized demand. Unsatisfied demand characterized by data on availability, movement and structure of free jobs and vacant posts for various signs (sectors and sectors of the economy, professions and required qualifications, the duration of the proposed employment, the level of salary proposed, etc.).
The magnitude of satisfied and unsatisfied demand is established on the basis of a fixed (A, which means that employees hired for this period, on the one hand, and the remaining jobs are on the other side.
Under potential demand Demand means taking into account possible prospects for the development of enterprises and organizations.
The structure of demand for labor is determined by specific species. labor activitywhich are carried out in organizations in accordance with the profile and specialization. In the modern period, the structure of demand is extremely difficult, since within social production There are tens of thousands of specific types of labor, and their aggregate is in continuous movement, constant change and update.
In the integrined plan, from the point of view of the professional qualification level of the employed labor force, the structure of demand is divided into the following main groups:
a) the demand for highly qualified labor;
b) the demand for the working power of secondary qualifications;
c) the demand for the working power of low qualifications;
d) the demand for unskilled labor.
In conditions of intensive development scientific and technological progress The demand for qualified and highly qualified labor, and in the conditions of a low technical and technological level of production prevails the demand for the working power of medium and low qualifications, and often on unqualified manual labor.
They argue that, with other conditions, the direct elasticity of demand for a certain type of labor by wages is higher than:
1) above the elasticity of demand for the price of a product produced by the company;
2) easier to replace this species labor by other factors of production;
3) above the elasticity of the proposal of other factors of production;
4) A large proportion of the cost of this type of work is in total production costs.
First Law - The law of the elasticity of demand for the price of the product produced by the company. This law is associated with the nature of demand for labor as a production demand and, therefore, so that, with other things being equal, the amount of labor used depends on the product volume on which the demand for the product market is placed. This law B. more than Refers to the effect of scale than to the replacement effect. Salary reduction reduces costs and prices and cause an increase in demand for the product. The more elastic demand for the product, other things being equal, the greater will be an additional product consumed by the market with each data price reduction. In these circumstances, there is a greater effect of scale and, therefore, more significant growth demand for labor. The elasticity of demand for the work of the company will be higher than for the industry as a whole, and higher in the long term than in the short-term.
Second Law - The law of replacement of labor by other factors of production. It can be expected that the elasticity of demand for labor will be higher in the long-term period than in the short term, because technical capabilities Factor replacement is more favorable in the long term. The long-term period is defined as a period during which capital can change. This is a prerequisite for the replacement of labor capital.
Third Law - The law of the elasticity of the proposal of other factors of production. If two factors are denominators, the increase in the wage rate generates the replacement of labor by capital, under all other things being equal. Suppose that the effect of scale that reduces production volumes is insignificant, and the effect of substitution reduces the demand for labor. If the capital supply in the industry is highly elastic, then the effect of substitution is observed. If, on the contrary, the proposal of capital is inelastic, the same substitution effect is expressed in the fact that changes in the inclust will be not sharp. Similar arguments are applicable when production is expanding. Any capital replacement by labor caused by a decrease in wages will face counter-effect due to the expansion of production.
Fourth Law - The law of the share of labor costs in the total costs of production. This law is not absolute, it requires one refinement relating to the elasticity of substitution of production factors. In the specified formulation, this law is performed if the elasticity of replacement of factors of production is less than the elasticity of the demand for the product. If the elasticity of replacement of factors of production is more elasticity of demand for the product, the situation is reverse: the higher the share of labor costs in total costs, the lower the elasticity of demand for labor.
Modified demand model for labor
Market demand curves
The demand curves on individual firms show how much difficult to attract each of them at a given level of real salary. Market demand curve- it's nothing but totaldemand for work on the part of all firms on a certain labor market at any definedthe level of real salary. If there are three firms in this labor market and if at a certain level of the real salaries, a firm A can hire 12 workers, a firm B - 6 workers and a company in 20 workers, then market demand will be 38 workers. Even more importantly, the fact that the market demand curves are directly displayed from the demand from firms, they aims downas a real salary function. With the fall of the real salary of the company will be able to attract more workers. In addition, the lower salary makes it easier for the company to enter the market. Conversely, with the growth of remuneration of the company, the firms are forced to hire less workers, and some of them will close.
Until now, we believed that firms take prices for products as a given. If the firm is dealing with a tilted down demand curve for its products, i.e. as the number of employed and products increases the latter decreases, then the final income ( Mr) obtained when selling the last generated unit of products, will not be equal to its price (R). The final income will be less than the price of the product, because the reduced price was used when selling all product units produced, and not just the latter. By virtue of this, the above equations and notdetermine the demand for work if a monopoly exists on the market.
Stirring to the maximum profits of a monopoly, acting on the competitive market labor,will hire new workers as long as the maximum money product (MRP. ) does not compare to the salary:
MRP \u003d (MR) (MP L)= W.
Now we can express the short-term demand for work through a real salary, separating the equation on the price of the company's product, resulting in:
(Mr / R) (MP L) \u003d W / R
Since the maximum income is always less than the price of a monopoly product, attitude (Mr / R)in the equation less than one. Therefore, with other things being equal, the demand curve for labor in relation to a company that is a monopolist in the market of its products will take place below and the left of the demand curve for work characterizing the same companybut not a monopolist. In other words, with other things being equal conditions, the production of products during monopoly production will be lower than with competition, and the same refers to the level of employment.
However, level salariespaid by a monopolist, should not necessarily differ from the salary that exists on the competitive market, although the level employmentbelow. The monopoly manufacturer of any product can take only a small labor market sector for defined type workers, and therefore he is forced take prices for labor marketdespite the fact that in the market of goods he prices dictateon your products. So, any local monopoly can occupy the dominant position in the market of any product, but when she has to hire, for example, the secretary, then it will have to compete with other firms by setting it a generally accepted payment of labor.
There are, however, the circumstances in which the economists believes, and the monopolist firm can pay highersalary than firms working in competition with each other. Monopolies, and in the USA, the existence of some of them is permitted by law. Must comply with government regulation aimed at preventing superfits. Such regulation of profits can be believed to stimulate monopolies to set higher labor payment than if they were installed, being complete monopolists. There are two reasons explaining it.
The first: the state allows monopolies to endure costs for product buyers. Therefore, heads of monopolies, although they cannot maximize profits, achieve exceptional positionon the labor market, establishing a high salary and shifting costs on consumers in the form of more high prices. The ability to pay a higher salary to your employees facilitates the existence to the head, allowing him to hire more attractive people or choose employees in the labor market with the required characteristics.
Second: monopolies that are not yet covered state regulationMay not want to attract unnecessary attention due to their too high profits. This can serve as a motive for them to high wage, which is partially intended to conceal profits. In other words, super-profits of monopolies partially acquire the view of highly paid labor for some categories of workers, and do not have the form of ordinary cash income.
Be that as it may, the data on a monopoly paid salary is not very much, and they are ambiguous. Some researchers come to the conclusion that firms existing in industries with a small number of competitors, reallythey pay their working equal qualifications more than firms operating in the competitive market. However, other studies of regulated monopolies received ambiguous data on the amount of wages for employees of equal qualifications in them and in competitive firms.
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Modified models demand for work by company
from "Labor Management"
Until now, the initial point of our reasoning was the provision that the company produces products for topics that form a competitive market, and production volumes do not affect sales prices. But if the company occupies a monopoly position in the product market and satisfies most The needs of it, then it deals with the demand curve on its products, which has a slope down, which characterizes the price reduction as the volume increases. In this case, it turns out that the income received when selling each subsequent unit of production will decline. This is due to the fact that the increase in sales is due to the need to reduce the price of all manufactured products, and not just the latter. By virtue of this, the demand for the work of the monopolist firms on the product market is not determined by the formula Mr \u003d W.Such a company will hire new workers until the limiting money comes with wages (Labor market Competitive and wage rates have a dance for the company). And since the increase in the volume of products and the number of hired workers lead to a decrease in the maximum money product, the monopolist will limit its production and hiring of workers compared to the firm operating on the competitive market. Therefore, with other things being equal conditions, the demand curve for labor will take place below and the left of the competitive firm.
Until now, we talked about the situation when the employer goes to the competitive market of labor, where the wage rates are for him a certain given. But if a company or firm is the only workforce of the workforce of this qualification or in the region, how then the relationship of hiring and remuneration is in contrast to the firms forced to accept the market given to the market, which finds its expression in the horizontal curve of supply, monoppsies companies have to deal with the curve of the sentence, which is directed upwards, namely the market curve, where each additionally entering labor Relations Worker is more expensive. To increase production, the monoponic company should increase labor payment in contrast to the competitive, which can increase production with a stable wage level.
When we talk about the long-term period, we mean that there are changes in the constant capital. Employers at their discretion change capital and the number of employed workers. An increase in wages is associated in the number of hired workers in accordance with two factors. The first is the effect of scale. It is that the firm seeking maximizing profits will increase production and the number of employed income from the last generated unit of production will be equal to the limiting costs of production. Under these conditions, the increase in remuneration entails the growth of costs without affecting the marginal income. As a result, with the previous equilibrium production level of products limit costs Start exceeding marginal income. The company suffers losses from the release of the last unit of products, and it can increase the income after wage increases only by reducing production, that is, the reduction of capital and labor used.
The second factor is the effect of substitution. The desire of a firm to minimize production costs is achieved when an additional unit of production produced by an additional unit of labor (with unchanged capital) costs as much as if it was produced by increasing capital. So. The company wants to ensure a permanent level of production, but would like to change the ratio of capital and labor in the hope of reduce costs. If the limit costs with an increase in production per unit when using only additional labor are equal to $ 13, and with an increase in capital - 10 dollars, then the corresponding reduction in labor and increase in capital makes it possible to preserve the previous level of production, and costs to reduce 3 dollars. Labor replacement capital will occur until the cost of production of an additional unit of production caused by the recruitment of an additional unit of labor exceed the costs of the production of an additional unit of products related to increasing capital.
This equation shows that to ensure a minimum of production costs, the company should increase capital and labor until their relative limiting costs are equal to relative limiting performance.
Consider the labor market of unskilled workers, suggesting that the law on a guaranteed minimum will be distributed on all of them.
In fig. 8.4 The market is represented by the unqualified labor force, which is in a state of equilibrium before the introduction of the legislative minimum of wages. EPO Employment level, and real wages are equal to WO / PO. What happens after the introduction of new rates, which are higher than the initial wages of this will lead to the fact that the real wage will rise to the WL / PO level, but the number of employees hired by the firm will have to be reduced to E1. However, the number of wishes to work for a new wage increased to E2, which increases the amount of unemployed to magnitude (E2 - E1).
To what extent is such a position contributes to the achievement of an acceptable standard of living of workers here everything depends on the specific sizes of this minimum, as far as it is capable of compensating for the loss of possible unemployment, as an unemployment insurance system allows you to exist during the search period.
The demand for work is defined as the amount of labor that the employer wants to use for a period of time for a certain payroll rate.
As a factor of production, the demand for labor is derived in demand, since the decision on the volume of labor used depends on the decision on the volume of manufacturing material goods and services.
A simple model of demand for work is based on the following prerequisites:
The target function of the company is to maximize profits.
The behavior of the firm is described by the production function of a two-factor type (factors - work and capital).
The company operates on the competitive market of the goods and labor market.
Costs of the firm for labor consist only from wages of workers.
The amount of employed labor depending on the wage is determined through the utmost product of labor, while the demand curve for labor in the short term is equal to the curve of the utmost product of labor. The function of demand for labor is descending.
In the long term variable factors are work, and capital. The decision of the commodity producer (employer) on the volume of factors used depends on the relative prices for production factors and the technology used.
The main law of variable proportions to select two factors of production reads: Factors will be used in such a way that the relative production volumes added by an additional unit of each factor are proportional to their relative costs.
With unchanged prices for production factors (W, R), an increase in the total cost of costs is graphically expressed in parallel shifts up and right lines of osokost. Each of these osokost will be tangent only to one isokvant. Touchpoints Isokost and Izokvant show the maximum output of products at a given level of costs or minimum costs needed for this product output.
The line connecting all the docks of the osokost and isokvant shows how the amount of production factors used will change with a change in the level of production of the company. This curve is called "The path of development of the company".
The demand for the work of the industry and the market. In case the firms compete in a single labor market and different markets of goods, the overall demand for labor equal to sum demand for the labor of individual firms. If the firms compete in a single market of labor and benefits, i.e. they form a branch, the demand of such a industry is not equal to the amount of demand for the work of its individual firms.
A simple model of demand for labor involves the existence of two factors - capital and labor. However, labor cannot be considered as homogeneous - employees vary by professions, qualifications, sex, age. The expansion of the demand model for labor involves the presence of at least two types of labor - qualified and unqualified. They can act as addresses and substitutes for the production of goods (as species of resources), as well as be complete additions and substitutes in the formation of demand for labor.
The work of workers employed under conditions of complete and incomplete working time can also be considered as two different types of labor used by the firm. The choice of a specific combination of these workers depends on the relative costs of their work and their relative performance.
The effects of scale and substitution in demand for work.Scale effect it is called a change in the amount of employed employment in response to a change in the volume of output, caused by changes in prices for production factors and, accordingly, the amount of production costs.
Effect of substitution it is called a change in the amount of employed labor in response to a change in the ratio of the volumes of the production factors used, caused by the change in prices for production factors.
If the salary rate changes, the effects of scale and substitution relative to labor demand are uninimited, with a change in capital price - multidirectional.
With an increase in the salary rate, the effects of scale and substitution will lead to a reduction in demand for labor.
Two types of labor as production factors can be substitutes for each other, if more use of one of them leads to a smaller use of the other in the production of this amount of products. Whether these production factors (types of labor) are complete substitutes or additives depends on the ratio of absolute values \u200b\u200bof replacement and scale effects.
Unqualified work and capital advocate, as a rule, in production. They are used together and when the price of one of these factors changes. The firm changes the demand for both of these factors in the same direction. However, if the capital price increases, the firm can reduce the demand for qualified labor and capital and compensate for this reduction to an increase in demand for unqualified.
Elasticity of demand for labor and the laws of derived demand.The direct elasticity of demand for labor on wages is defined as a relative (percentage) change in employment of a certain type of labor L i , caused by a single relative (single interest) change in wages of this type of labor W i.
The change in the elasticity of demand for labor is determined by the four law of the Marshall Derivative Demand - Hicks. They argue that, with other things being equal, the direct elasticity of demand for a certain type of labor on the salary is higher than:
higher elasticity of demand for the price of the product produced by the company;
it is easier to replace this type of labor by other factors of production;
above the elasticity of the proposal of other factors of production;
a large proportion of the cost of this type of labor is in total production costs.