584 Miller Economics Today, Nineteenth Edition
Chapter 28 The Labor Market: Demand, Supply, and Outsourcing
Manufacturing Jobs Disappear Worldwide
Political leaders and media commentators often express concern that since 1995, U.S. manufacturing
employment has fallen by nearly 12 percent. Their comments often imply that other countries must be
capturing those lost manufacturing jobs. In fact, many other countries have also experienced declines in
manufacturing employment. Since 1995, the number of people making goods in factories has also decreased
by 12 percent in Russia and South Korea. The United Kingdom has lost about 13 percent of its manufacturing
The Immigration Debate in the United States
Since 2006, illegal immigration has become a major political issue between the Republicans and Democrats.
An estimated 12 million illegal aliens are working in the United States. A large percentage of these workers
are in unskilled or semiskilled occupations, such as landscaping, custodial services, construction, and
agriculture. On one side, there are Republicans who want the federal government to send these workers back
Does Attractiveness Lead to Higher Marginal Revenue Product?
Economist David Hamermesh of the University of Texas, Austin, and Jeff Biddle of Michigan State University
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Lecture Extender Examples 585
How Tsunami Efforts Boosted Indonesian Wages
Following the tsunami disaster that struck the Indian Ocean nations in December 2004, the Red Cross and
other relief agencies from all over the world established offices throughout the region. For several months
the agencies hired local workers to help with the massive clean-up efforts, to assist in providing medical
At least once a year some superathlete lands a multimillion dollar contract, and the press is all agog over
the seemingly astronomical salary. You will hear sports writers and other persons commenting that no one
sport. Before we can determine whether an athlete is overpaid,
586 Miller Economics Today, Nineteenth Edition
Why Are European Businesses Using More Robots and Fewer Workers
Than U.S. Businesses?
Some European countries are experiencing the highest levels of unemployment since the Great Depression.
Since 2000, unemployment rates have been between 8 percent and 12 percent in many of the European
Union (EU) countries. For example, the unemployment rate in Spain has been around 11 percent to
12 percent, 8 percent to 9 percent in France and Germany, and 9 percent to 10 percent in Italy. Compare
How Long Does It Take to Earn a Big Mac?
One way to compare the real purchasing power of market wages in different countries is to determine
how long it takes to be able to buy an item that is available in most places in the world. One such product
United States, a typical worker spends about nine minutes on the job before earning enough to buy a Big
Lecture Extender Examples 587
The Widening Expanse of Outsourcing
Outsourcing has now become a fundamental aspect of operating many businesses in the United States.
U.S. airlines such as JetBlue, U.S. Airways, and Northwest Airlines now fly significant portions of their
fleets to El Salvador, Singapore, and Hong Kong for servicing and maintenance. U.S. automakers General
Motors and Ford Motor Company outsource basic auto design work to Germany and Sweden. Many U.S.