C H A P T E R

The Demand for Labor in the Short Run

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The Pattern of Employment Growth in the U.S. Economy, 1950–2001

Figure 4.1

Note: Employment figures do not correspond to those reported in Chapter 3 since those in Chapter 3 are from a household survey, and these figures were obtained from an establishment survey (except agriculture). These figures are more reflective of the total number of jobs, as opposed to the total number of people employed; for example, one person may hold more than one job.

Source: Bureau of Labor Statistics, Establishment Data, <http://www.bls.gov/ces/cesbtcbs.htm>; Agricultural employment obtained from the Current Population Survey.

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Data Necessary to Derive A Hypothetical Firm’s Labor Demand Curve

Table 4.1

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The Relationship Between Total and Marginal Product Schedules

Figure 4.2

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A Hypothetical Marginal Revenue Product Schedule and Labor Demand Curve

Figure 4.3

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The Impact on the Labor Demand Curve of Changes in Product Demand and Market Structure

Figure 4.4

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Derivation of the Market Labor Demand Curve

Figure 4.5

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The Five Categories of Demand Elasticity

Figure 4.6

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The Change in Elasticity over a Linear Downward-Sloping Demand Curve

Figure 4.7

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The Growth in Nonagricultural Employment over the Business Cycle, 1947–2001

Figure 4.8

SOURCE: Department of Commerce, Survey of Current Business (Washington, D.C.: Government Printing Office) and Bureau of Labor Statistics, <http://www.bls.gov/webapps/legacy/cesbtab1.htm>

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Percent Decline in Industry Employment during Recessions

Table 4.2

SOURCE: Norman Bowers, “Have Employment Patterns in Recessions Changed?” Monthly Labor Review 104, no. 2 (February 1981): 15–28. Data for the 1981 to 1982 and 1990 to 1991 recessions calculated by authors.

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The Length of the Average Workweek over the Business Cycle, monthly 1948–2001

Figure 4.9

SOURCE: Department of Commerce, Survey of Current Business (Washington, D.C.: Government Printing Office) and Bureau of Labor Statistics, <http://www.bls.gov/webapps/legacy/cesbtab2.htm>.

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Employment Growth in 10 Consumer Goods Industries, 1980–2000

Table 4.3

SOURCE: U.S. Census Bureau, Statistical Abstract of the United States: 2001, Table 609 <http://www.census.gov/statab/www/>.

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The Effect of a Wage Subsidy Program on Labor Demand

Figure 4.10

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The Effect of Import Restrictions on Auto Employment

Figure 4.11

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Impact of Import Restrictions on Price and Employment in Seven Industries (in 2000 dollars)

Table 4.4

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The Demand for Labor and Wage Concessions

Figure 4.12

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