labour market discrimination short notes

this slides will give you sufficient information on labor market and discrimination issues in that. this particular topic is belongs from compensation management which is the enhanced branch of human resource management. the understanding for labor market and labor problems is so necessary for a human resource person.

1. Labour market discrimination

2. What is Labor Market? The labor market or job market is a platform where the demand for (by employers) and supply of (by workers) employment meet. It assists in creating a skilled workforce that flourishes with competition, development, and economic expansion. Also, the  labor market graph  is useful to comprehend its definition and get information on tight or equilibrium job markets. 

3. The  labor market definition  connotes a marketplace entailing the supply and demand of labor by employees and recruiters, respectively.  Its functioning is different from the microeconomic theories and macroeconomic theories. Additionally, it achieves an equilibrium position where labor price and volume are balanced.   It has four components: workforce participation, candidate population, candidate pool, and recruited individuals.  The job market assists employers in examining the quantity and quality of the workforce to be recruited. Also, it authorizes employees to demand a competitive remuneration package

4. Labor Market Explained Labor market performance differs in the microeconomic and macroeconomic theories. Please note that the microeconomics theory examines the labor demand and supply at an independent employee and employer level. In contrast, the macroeconomics theory reviews the connection between commodities, jobs, the foreign exchange market, and cash.  

5. In  macroeconomics , this indicates the shortage of wages upon labor supply exceeding its demand. It also has four kinds of  unemployment :  Frictional Unemployment ,  Structural Unemployment ,  natural unemployment , and  Cyclical Unemployment .  Comparatively,  microeconomics  specifies raised supply of labor upon increased demand (subject to the product’s  marginal cost  and  marginal revenue ). Above all, job market inspection is pertinent to discover the most competent employees and offer them competitive  remuneration .  Please note that the  labor market graph  exhibits an equilibrium position where the labor quantity and cost are balanced and unaffected, except in serious circumstances. Most importantly, the employers are considered sellers while the workforce is conceived as buyers. 

6. A common element linking the two parties and the chief motivating factor in the job market is certainly the mutually-agreed earnings or payment. However, it is unstable and can vary depending on the employee’s performance. That is to say, jobholders transfer locally or overseas according to the skill demands and are replaceable. 

7. Labour market discrimination Discrimination Labour 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 groups due to their non-economic characteristics, including gender, race, religion and age. This means that while workers may be equally productive, they are not treated the same. Treatment may be positive, where certain groups are favoured, or negative, where groups are treated less favourably. Discrimination – effect on demand and supply In terms of demand, negative discrimination will lead to employers downgrading the expected value of employment of a particular group, and hence reducing the expected MRP, and shifting the demand curve to the left. The effect of this is to reduce the wage rate of the group discriminated against, as well as reducing employment prospects.

8. Also, some workers who fear they may be discriminated against may not seek employment in those firms that they perceive practice discrimination. Hence they do not supply their labour to those types of firms. This shifts the potential supply curve to the left, and raises the relative wage rate of the favoured group. Despite various Acts of Parliament, including the Equal Pay Act (1970), Sex Discrimination Act (1975), and Employment Protection Act (1975), considerable pay differences exist – though not all can be attributed to discrimination.

9. There are several policies that could be used to help reduce discrimination. A report by the OECD suggested the following: Long-term investment in education and training to prepare people better for the labour market. Structural reforms to promote stronger and more sustainable economic growth which can boost demand for workers, creating a more competitive environment that forces managers to drop discriminatory hiring and promotion practices. Specific anti-discrimination legislation backed up by effective enforcement. Enforcement agencies should be empowered, even in the absence of individual complaints, to investigate companies and sanction employers when they find evidence of discrimination.

10. Dearness Allowance (DA) Dearness Allowance can be understood as a component of salary which is some fixed percentage of the basic salary, aimed at hedging the impact of inflation. Since DA is directly related to the cost of living, the DA component is different for different employees based on their location. This means DA is different for employees in the urban sector, semi-urban sector, or the rural sector

11. What is Dearness Allowance? Dearness Allowance is the cost-of-living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same. DA component of the salary applies to both employees in India and Bangladesh. Types of Dearness Allowance The Two separate categories to calculate Dearness Allowance are Industrial and Variable Dearness Allowance. Industrial Dearness Allowance Industrial dearness allowance or IDA is the allowance applicable to employees of public sector enterprises. Variable Dearness Allowance VAD or Variable dearness allowance is the allowance that comes as a result of revision every six months for central government employees. 

12. Equal Remuneration Act, 1976 For instance, consider that you are a woman working really hard to earn well, but you find that there is some other person who worked half as hard as you but earned double the amount just because that person was a male. The basic concept underlying, the very controversial subject, Feminism, is “equity”. Equity refers to a treatment of equal with equals and Unequal with un equals. The  Equal Remuneration Act, 1976  (the Act) does just that. It provides for Equal remuneration both men and women, but also understanding the fact that it will not override any special treatment provided to women in the country. There was a time in India when women used to face heavy discrimination in pay. But, after the advent of this Act, women have been able to sue malpractices prevailing in their workplace

13. Act to have overriding effect The Central Industrial Machinery (also, Chief Labour Commissioner) has given effect to this Act and it states that it will not affect the terms and conditions of any law which provides special treatment to women. The statement in Section 3 itself suggests that it will have effect under all circumstances. The Equal Remuneration Act, 1976, helps in bridging the gap between unequal remuneration faced by the women of our country. By the successful implementation of the Act, India is moving closer to being a country, which treats its men and women equally.

14. Fair Employment Practices Committee (FEPC) Committee established by U.S. Pres. Franklin D. Roosevelt in 1941 to help prevent discrimination against African Americans in defense and government jobs. The Factories Act,1948 the Factories Act, 1948 consolidating and amending the law relating to labour in factories, was passed by the Constituent Assembly on August 28, 1948. The Act received the assent of Governor General of India on 23 September 1948 and came into force on April 1, 1949.