The most basic models of labor supply and demand would suggest that a bigger labor pool depresses wages, and indeed this is the argument taken up by many opponents of more open immigration policy.
This has been done by seeking less expensive sources of labor and supply (frequently with corresponding complexity increases), and by squeezing greater efficiency out of the supply network.
China may still have abundant rural labor supply, but it has a shortage of the skilled labor supply it now needs.
Economist Jesse Rothstein has a new paper where he constructs a model of teacher labor supply and how it interacts with education reform policies meant to affect teacher quality.
But, while employment growth needs adequate aggregate demand growth to spur the demand for labor, the supply of labor is also important.
Traditionally, this calculus focused on factors like market liquidity, the quality and quantity of the local labor supply and efficient regulatory oversight.
With the NRA, labor unions had greater power to organize and restrict the supply of labor in order to push up wages without necessarily increasing productivity.
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On wages, both Greenspan and Bernanke have been quick to tout productivity gains in recent years as mitigation against higher labor costs, even as 35 straight months of job gains have brought the nation close to full employment, tightening the supply of labor.
Fast food restaurants are getting by with the absolute minimum amount of labor they need to supply their products.
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There are limits to the benefit, as some types of labor are in short supply (such as computer programmers and nurses in rural areas).
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The supply of labor is shifting downward due to demographic factors, as well as changes in behavior resulting from a rising premium for education.
If you find the above totally unconvincing, just remember that in the long run, the supply of labor is just as important in determining the level of domestic employment as the demand for labor.
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Reducing the payroll tax therefore raises the returns to work, which under normal circumstances should result in an increase in the supply of labor and an increase in total output, with employers offering jobs to the additional workers.
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For Tony Volpon, a managing director in charge of emerging markets fixed income in the Americas over at Nomura Securities in New York, there are distinct factors changing the demand and supply of labor in the direction of tighter conditions.
The main areas of focus included business costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life.
The question of temporary workers has traditionally produced a stark divide between business and labor, with business seeking a large, low-cost supply of workers, and labor opposed to any guest-worker program that could threaten American laborers and produce questionable working conditions.
Poor education systems and rigid immigration rules hold back the supply of skilled labor.
Nike learned the hard way and was criticized for some of the labor practices in its supply chain.
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The malign effects exist because there's a gap between the demand for and the supply of unskilled labor and that gap cannot be filled legally under existing immigration laws.
By partnering with Quintos, Kinsella got access to a steady supply of the cheap labor that makes offshore call centers so profitable.
"We have an abundant supply of low skilled labor waiting for jobs, " argued Peter Kirsanow, a member of the U.S. Commission on Civil Rights.
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Whatever your politics, I think we can all agree that there is a significant difference between a law that makes less labor available by restricting the job market and one that reduces the amount of labor that workers are willing to supply.
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These include increasing difficulties of mining far below the ground in the key producing nation of South Africa, as well as labor issues that mean higher costs and the threat of supply disruptions due to strikes.
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Third, we will continue to make sure that our entire federal supply chain is free of trafficked labor.
To prove just how serious the tech giant was about their concerns, Apple partnered with the Fair Labor Association, launching an audit of their supply chain.
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Like everything else, the labor market is governed by the laws of supply and demand.
The chamber and AFL also have agreed to create a new federal bureau to inform Congress and the public about labor supply issues, but the role of that entity remains unclear.
The labor market is subject to the same laws of supply and demand as any other market.
The CBO also says that "the major health care legislation enacted in 2010 will reduce the labor supply slightly" and that the likelihood of higher individual tax rate will deter growth.
Second, as Shell President John Hofmeister pointed out in his testimony, prices are shooting skyward in part because of rising demand in China and India, the rising cost of materials and labor, and international events, such as supply disruptions in the Niger Delta.
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