LABOR MARKET

DISCRIMINATION AND
LABOR UNIONS
Marjorie Dedil, Charline Condrilon, Alpha Mae A. Paracale, Michelle Patagnan,
Eliza Mae Vergara, Mergie Verwin
 Labor Market Discrimination

Is defined as a situation where workers or groups

of workers are treated differently in terms of
recruitment pay, benefits and promotion from
other workers or group due to their non-
economic characteristics, including gender, race,
religion and age.
 THE CHARACTERISTICS OF
DISCRIMINATION IN THE LABOR MARKET

Discrimination usually happens when there is an

imperfectly competitive labor market. The reason for
that is that in such labor market structures, employers
can influence the wages and pay someone differently
from what they would pay someone else. So, whenever
there’s discrimination in the labor market, that is
usually an imperfectly competitive labor market.

An important condition that needs to exist for labor

market discrimination to take place is that employers
can separate particular groups of people that supply the
same labor.

.
 Four types of Discrimination
in the Labor Market
There are many types of labor market discrimination.
Discrimination in this matter can take many forms, and it
can be very subtle. However, four main types of labor
market discrimination include:

Wage Discrimination
Employment Discrimination
Employee Discrimination
Customer Discrimination
Wage Employment Employee
Customer
Discrimination Discrimination Discrimination
Discrimination
• Employee
• Is when a • Employment • Customer
Discrimination is
worker or a Discrimination is when fellow Discrimination
when a worker or workers treated occurs when
group of
a group of another worker or a customers
workers get workers are group of workers are treated
paid less than treated unfairly unfairly because of differently
other workers because of their differences of
because of
for doing the age, race, religion, race, age,
ability, etc. their gender,
same job. gender, etc. race, age, etc.
Gender Discrimination
in the labor market

Gender Gap are one of the most pressing

challenges facing the world of work today.
Globally, women are substantially less likely
than men to participate in the labor market,
and once in the workforce, they are also less
likely to find jobs than men.
 Discrimination in labor markets

 Discrimination most commonly occurs by age, gender, ethnicity and

disability.
 The most obvious type od labor market discrimination is wage
discrimination. The conditions necessary for this include:

Degree of monopsy power.

Ability to identify and separate different

groups of workers
Different prize elasticity and supply in
different groups.

No opportunities for reselling

labor
The economic impacts of discrimination include:
 MRP of favored groups is overestimated while MRP of
those discriminate against is under valued
 It distorts the working of the market mechanism and causes
inefficiency- this is an example of market failure
 Supply and labor from minority groups will decrease as
they become discouraged and stop putting forward
application. This reduces human capital and productivity
and labor cost.
LABOR UNION
What is Labor Union?

 A labor union is an organization formed by workers

in a particular trade, industry, or company for the
purpose of improving pay, benefits, and working
conditions.

 A labor union selects representatives to negotiate with

the employers in a process known as collective
bargaining. When successful, the bargaining results in
an agreement that stipulates working conditions for a
period of time.
 NO.02
O.01

NO.01
NO.03
Four Labor Union Types

1. Craft-based 3. General
Unions

2. Industrial 4. Federations
 1. Craft-based Unions
Daily wage earners of varied professions
form this union as it gives them immense
bargaining power to safeguard their rights
and interests.
2. Industrial Unions
Manual labor, semi-skilled, highly-skilled
workers from any one industry, for example
electricity or steel industry, form this union.
They form it at the industry or regional level.
3. General Union
All types of unions, like craft and industrial
unions, have one central body. An example,
includes the national labor union congress.
This central union has power to negotiate
for the employee’s rights.
4. Federation
Many small or localized unions come
together to reform a federation. It also acts
like a political entity with the characteristics of
a union
 The majority of trade
unions work as non- Do labor
These unions do not pay taxes
profit organizations union pay
working for the taxes? to the federal government.
upliftment of the rights However, it is necessary to
of the workers. declare their financial
According to the information to the public. Also,
Are labor they must file an annual or tax
501(5) of the Federal
unions return as per Internal Revenue
Law, trade unions are non-
a part of the non-profit Service( IRS).
profit?
as they are not entitled
to labor union wages.
https://www-economicsonline-co-uk.cdn.ampproject.org/v/s/www.
economicsonline.co.uk/labour_markets/labour_market_discrimination.html/amp/?
amp_gsa=1&amp_js_v=a9&usqp=mq331AQKKAFQArABIIACAw%3D
%3D#amp_tf=From%20%251%24s&aoh=16692419599005&referrer=https%3A
%2F%2Fwww.google.com&ampshare=https%3A%2F
%2Fwww.economicsonline.co.uk%2Flabour_markets
%2Flabour_market_discrimination.html%2F

https://www.studysmarter.us/explanations/microeconomics/labour-market/
discrimination-in-the-labour-market/

https://en.m.wikipedia.org/wiki/Trade_union
Activity!!!

1. Why do discrimination
occur in the labor
market?
2. What would be the
benefit of joining Labor
Union?
.
 Thank you
for listening!