Transcript Labor Demand

THE DEMAND
FOR
LABOR
1
Hwei-Lin Chuang, Ph.D.
2014/03/11
2014-2016 數位內容產業人才需求調查報告摘要

產業發展趨勢對人才需求的影響

行動化：據資策會FIND估計，預期2018年，平板電腦將是繼上網人
口、社群人口、智慧型手機，為第四個具備千萬用戶的智慧終端。
產業需要更多行動開發人才(App程式開發、UI/UX設計人才) 。

匯流化：隨4G服務上線，未來4年臺灣將進入行動大寬頻時代，核
心及關聯產業之間的界線越來越模糊，隨著商業模式混搭並持續創
新，未來如何整合運用在內容開發及市場喜好掌握等，是國內業者
最大的瓶頸。產業需要培育更多具備跨界整合能力的人才以因應產
業匯流之趨勢。

國際化：臺灣數位內容產業市場規模小，國際化擴張是必要手段，
國際市場目前在中國大陸遭遇不少進入障礙，未來國際市場可聚焦
策略性重點國家如日本及東協國家市場，產業需要更多行銷(懂當
地市場)人才、在職人才需提升國際化/語言能力。
資料來源：經濟部工業局2014-2016數位內容產業專業人才需求調查(2013)
資料整理：繆淑蓉／工研院產業學院副管理師
2
表一 數位內容產業專業人才關鍵職缺需求調查結果表
3
資料來源：經濟部工業局2014-2016數位內容產業專業人才需求調查(2013)
資料整理：繆淑蓉／工研院產業學院副管理師
表一(續) 數位內容產業專業人才關鍵職缺需求調查結果表
4
跨界新人才
等你卡位！
文／2013年1月號數位時代 採訪．撰文／趙郁竹 攝影／賀大新 插畫繪製／JV. Huang

回想一下，五年前第一支iPhone剛問世，沒有人想像得到App帶來的新經濟浪潮，但現
在，每家企業都想開發App，讓Objective-C程式工程師成為市場搶手貨。從電腦、網路
到現在的雲端，未來人與人、人與機器、機器與機器，都將產生全面連結，數位匯流
和大資料（Big Data）應用起飛，推動整個商業社會的轉型。

未來需求一：跨界人才



過去台灣企業重視的特質是服從、盡職、單一領域的專業，「但未來最有競爭力的人才是熱情
、創新，而且具備跨領域專業能力，」本土工業電腦大廠研華科技總經理何春盛指出。例如遠
距照護、健康雲、智慧交通……，都是政府正大力建設的科技應用，這些都需要懂科技又懂產
業知識的跨界人才。
未來需求二：國際化人才

擁有國際化能力，走到哪裡都吃香。「IBM徵才最重視兩件事：專業能力和國際觀，」IBM人
力資源部處長林雅莉說，國際企業希望員工不畫地自限，走到哪都能工作。

但如何在面試官前呈現自己的國際化能力？首先當然英文能力是基本功，但所謂國際觀不是只
有語言能力，林雅莉建議，年輕人從在學時就應開放心胸、自我練習，例如邀請不同國家、不
同文化的人共學。
根據1111人力銀行統計資料，2011年資訊／科技產業一年以下經驗新鮮人的平均薪資
為3萬1305元，比2010年增加了1352元。若單看工程研發職務，新鮮人平均起薪更達3
萬5103元。 「22K到15K」之說讓許多人心惶惶，但簡立峰、張明正都認為，年輕人的 5
未來其實沒有那麼糟，只要掌握跨領域、國際化能力，再加上一點樂觀和自信，機會
自然會到眼前。
眼界的遠近，決定你的機會─台灣軟體人才的機會與挑戰
文／2014年2月號數位時代
撰文者／陳芷鈴

在台灣，軟體相關科系向來是升學大熱門，每一屆畢業生投入軟體業者也不在
少數，但為何台灣缺乏軟體人才的聲浪依舊不斷？全球最大的國際性人力資源
服務公司藝珂人事顧問東北亞區執行長陳玉芬以及協理劉小筠，從全球人才招
募者的角度，分享台灣軟體人才的機會與挑戰。

Q 近年在找軟體人才有沒有感受到一些新需求或新趨勢？

劉小筠 : 現在所有科技業都講求創新，很多人才需求可能昨天沒有，但今天就
產生出來。軟體人才可能有技術開發、技術應用或是將這些技術轉成可使用的
程式設計工程師等，其實整個市場是在擴大的，有傳統需要的軟體人才，也有
因應新技術或新消費市場需求所產生的職缺，比如像4G，就可能產生跟通訊、
大數據、雲端運算等相關的軟體人才需求。這些趨勢會持續不斷發展，未來如
果能發展個三十年，我們目前可能才走完第一個十年，還有很多未知的東西。

Q 走出去學習的確是能夠帶回創新，但就我們台灣產業來說，是否也有一些軟
體人才的發展空間呢？

陳玉芬 : 我們是鼓勵candidate（職位候選人）多去爭取一些國際性的計畫，他
們也可以在家完成工作啊！不要只想找離家近的工作，眼光放遠一點，你可以
試著談判，談看看可不可以在家工作，讓你的工作管道可以廣一點，這樣子的
眼界對我們的產業來說也是好的。
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事業單位預計：
103年4月底人力需求較1月底淨增加36.7千人
勞動部103.03.04 新聞稿

為了解民國103年4月底就業市場人力需求情況，勞動部於103年1月
13～29日針對員工規模30人以上的事業單位辦理「103年第1次人力
需求調查」，總計回收有效樣本3,015家，調查統計結果摘述如下：
一.事業單位預計103年4月底人力需求較1月底淨增加36.7千人，主因全
球復甦步調穩定、先進國家景氣明顯回溫，內、外需皆漸有支撐，
廠商增僱員工意願持續提升。
二.按行業別觀察，淨增加僱用人力的行業以製造業淨增19.4千人較為
明顯，其次為批發零售業淨增5.0千人、住宿及餐飲業淨增2.9千人
三.按職類別觀察，以技術員及助理專業人員淨增加11.4千人、技藝/機
械設備操作及組裝人員淨增加10.3千人最多
四.整體來看，增加僱用人力的原因以「需求市場擴大（含設備或部門
擴充）」及「退離者補充」為主。
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表二 事業單位預計103年4月底較1月底僱用人力增減情形
單位：人；％
按事業單位家數統計
項目別
總計
行業別
製造業
污染整治業
營造業
批發及零售業
運輸及倉儲業
住宿及餐飲業
資訊及通訊傳播業
金融及保險業
不動產業
專業、科學及技術服務業
支援服務業
醫療保健及社會工作服務業
藝術、娛樂及休閒服務業
其他服務業
員工規模別
30 ～ 99人
100 ～ 199人
200 ～ 499人
500人以上
總計
增加
僱用
(1)
不變
減少
僱用
(2)
按需求人數統計
無法
預估
淨增減
百分點
(1)-(2)
增加
僱用
(3)
減少
僱用
(4)
淨增減
人數
(3)-(4)
100.00
21.08
63.21
3.93
11.78
17.15
48,358
11,682
36,676
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
22.96
7.91
16.96
20.02
20.58
21.06
25.55
9.39
31.11
13.36
21.66
29.45
1.65
24.88
63.24
53.96
56.27
68.57
64.62
58.59
58.35
63.38
62.50
69.27
47.18
59.65
98.35
54.15
2.84
8.21
4.54
4.21
6.67
3.78
3.57
1.94
2.67
5.42
4.89
4.88
10.96
38.13
18.56
6.87
10.59
13.68
12.33
23.66
4.44
14.69
25.74
6.02
16.10
20.12
7.91
8.75
15.48
16.37
14.39
21.77
5.82
29.17
10.69
16.25
24.56
1.65
20.00
23,839
58
1,619
8,092
1,032
3,377
1,435
1,304
1,304
798
2,984
1,919
112
485
4,407
978
3,058
138
478
345
58
22
222
1,452
446
78
19,432
58
641
5,034
894
2,899
1,090
1,246
1,282
576
1,532
1,473
112
407
100.00
100.00
100.00
100.00
20.51
20.60
28.62
19.02
64.92
62.41
51.52
55.56
3.70
3.98
3.81
8.44
10.87
13.00
16.05
16.98
16.80
16.61
24.81
10.58
24,151
6,839
9,282
8,086
4,601
1,842
1,891
3,348
19,550
4,997
7,391
4,738
8
表三 eJob全國就業e網2014/01/01~2014/03/07熱門職缺統計表
產業分類
農、林、
漁、牧業
電力及燃氣
供應業
編號
職業類別
職缺人數
1
作業員
2
編號
職業類別
職缺人數
編號
職業類別
職缺人數
111
1
加油服務生
46
1
作業員
12056
園藝栽培工
72
2
職業大貨車司機
27
2
製程技術員
9483
3
包裝作業員
68
3
一般會計及出納
11
3
一般機械操作工
2919
4
種苗栽培工
57
4
作業員
11
4
包裝作業員
2169
5
家畜飼育工
52
5
推土機、怪手操
作員
7
5
品管檢驗人員
1859
6
農作物栽培工
52
6
營建施工人員
5
6
電子設備裝修技術員
1781
7
粗工
30
7
職業大客車司機
5
7
電子設備組裝作業員
1540
8
職業大貨車司機
25
8
行政助理
4
8
工廠配置技術員
1373
9
小客(貨)車司機
22
9
汽車維修技術人
員
4
9
助理工程師
1271
10
環境清潔工
22
10
小客(貨)車司機
4
10
儲備幹部
1195
1
加油服務生
38
1
環境清潔工
236
1
粗工
938
2
水電配線技術員
26
2
作業員
134
2
營建施工人員
824
3
實驗化驗人員
15
3
大樓及辦公室清
潔員
100
3
水電配線技術員
510
4
職業大貨車司機
12
4
粗工
89
4
環境清潔工
273
5
儲備幹部
11
5
職業大貨車司機
50
5
空調冷凍技術人員
190
6
小客(貨)車司機
10
7
工讀生
8
產業分類
礦業及
土石採取業
用水供應及
污染整治業
產業分類
製造業
營造業
6
貨物搬運人員
32
6
電機技術人員
165
10
7
環保工安專業人
員
26
7
製程技術員
158
化學工程師
10
8
倉管人員
25
8
焊接、切割工
128
9
業務人員
10
9
小客(貨)車司機
23
9
作業員
97
10
貨物搬運人員
9
10
水電配線技術員
21
10
土木工程師
93
9
表三 eJob全國就業e網2014/01/01~2014/03/07熱門職缺統計表(續)
產業分類
運輸及
倉儲業
金融及
保險業
編號
職業類別
職缺人數
1
職業大客車司機
950
2
職業大貨車司機
3
產業分類 編號
職業類別
職缺人數
1
餐飲服務及接待員
399
2
貨物搬運人員
297
4
外務及快遞人員
224
5
小客(貨)車司機
202
編號
職業類別
職缺人數
6685
1
客戶服務人員
408
廚師助理
1498
2
賣場店員及門市人員
396
3
工讀生
1493
3
工讀生
384
4
房務員
908
4
業務人員
267
5
儲備幹部
871
5
電話行銷人員
215
6
客戶服務人員
158
6
賣場店員及門市人
員
496
6
通訊產品維修人員
213
7
倉管人員
136
7
中/西餐烹飪廚師
472
7
升學補習班老師
133
8
業務人員
117
8
廚務清潔員
467
8
儲備幹部
119
9
作業員
112
9
櫃檯服務人員
465
9
小客(貨)車司機
116
10
汽車維修技術人員
100
10
飯店工作人員
362
10 網路軟體程式設計師
1
電話行銷人員
306
1
不動產銷售人員
1386
1
電機技術人員
111
2
保險業務經紀及內勤
人員
285
2
業務人員
347
2
作業員
104
3
金融專業人員
251
3
展店開發人員
73
3
賣場店員及門市人員
95
4
理財專員
166
4
行政助理
62
4
業務人員
92
5
業務人員
84
5
不動產代書
59
5
客戶服務人員
81
6
證券營業員
72
6
大樓管理員
49
6
環境清潔工
80
7
儲備幹部
62
7
業務助理
45
7
水電配線技術員
79
8
客戶服務人員
50
8
行政事務秘書
37
8
IC佈局工程師
70
10
9
銀行櫃員
36
9
保全人員
30
9
一般會計及出納
67
10
軟(韌)體設計工程師
30
10
業務主管
20
10 大樓及辦公室清潔員
住宿及
餐飲業
不動產業
產業分類
資訊及通訊
傳播業
專業、科學
及
技術服務業
94
61
表三 eJob全國就業e網2014/01/01~2014/03/07熱門職缺統計表(續)
產業分類 編號
支援服務
業
醫療保健
及社會工
作服務業
職業類別
職缺人數
1
保全人員
2
編號
職業類別
職缺人數
5229
1
儲備幹部
大樓及辦公室清潔員
1472
2
3
環境清潔工
1239
4
作業員
475
5
大樓管理員
305
6
賣場店員及門市人員
285
7
包裝作業員
8
產業分類
公共行政及
國防與強制
性社會安全
產業分類
編號
職業類別
職缺人數
506
1
大專院校教授
1088
中/西餐烹飪廚師
62
2
幼教老師
501
3
環境清潔工
58
3
課輔老師
268
4
業務人員
35
4
語言補習班老師
141
5
市場調查員
20
5
電腦補習班老師
128
教育服務業
6
作業員
14
6
行政助理
116
152
7
行政助理
13
7
儲備幹部
112
業務人員
150
8
其他產品維修人員
8
8
研究助理
84
9
其他醫院從業人員
147
9
研究助理
7
9
行政總務人員
84
10
製程技術員
142
10
業務助理
6
10
托嬰保姆人員
83
1
護士
1017
1
餐飲服務及接待員
143
1
美容技術員
450
2
看護人員
924
2
客戶服務人員
130
2
保全人員
396
3
社會工作師
283
3
賣場店員及門市人員
79
3
美髮技術員
342
4
診所助理
142
4
業務人員
68
4
作業員
222
5
其他醫院從業人員
110
5
櫃檯服務人員
59
5
汽車維修技術人員
214
6
環境清潔工
61
6
環境清潔工
56
6
7
幼教老師
52
7
房務員
45
7
大樓及辦公室清潔
員
粗工
8
大樓及辦公室清潔員
49
8
工讀生
40
8
環境清潔工
178
9
業務人員
45
9
粗工
36
9
家務管理員
11
177
10
課輔老師
45
10
導覽解說員
33
10
客戶服務人員
128
藝術、娛樂
及休閒服務
業
其他服務業
資料來源：eJob全國就業e網 http://www.ejob.gov.tw/about/HotJobList.aspx
183
180
THE DEMAND FOR LABOR
 The
demand for labor is a derived demand.
Employer’s demand for labor is a function of
the characteristics of demand in the product
market. It is also a function of the
characteristics of the production process.
12
INTRODUCTION
 Firms
hire workers because consumers want to
purchase a variety of goods and services.
 Demand
for workers is derived from the wants
and desires of consumers.
 Central
questions: how many workers are hired
and what are they paid?
13
TWO IMPORTANT FEATURES OF THE
DEMAND FOR LABOR:
1.
It can be shown theoretically and empirically
that labor demand curves slope downward.
2.
The quantity of labor demanded has varying
degrees of responsiveness to changes in the
wage.
14
WHEN THE DEMAND FOR LABOR IS
ANALYZED, TWO SETS OF DISTINCTIONS
ARE MADE:
1.
2.
Demand by firm v.s. the demand curves for an
entire market.
Note: Firm and market labor demand curves
have different properties although both slope
downward.
The time period for which the demand curve is
drawn.
Short Run: A period over which a firm’s capital
stock is fixed.
Long Run: A period over which a firm is free to
vary all factors of production.
15
A SIMPLE MODEL OF LABOR DEMAND
Assumptions:
(1) Employers seek to maximize profit.
(2) Firms employ two homogeneous factors of
production, employee-hours (E) and capital (K), in
their production of goods and services. Their
production function can be written as:
Q = f (E, K)
(3) Hourly wage cost is the only cost of labor.
Note: We ignore hiring, training cost and fringebenefit costs for the time being.
(4) Both a firm’s labor market and its product market
are competitive.
16
THE FIRM’S PRODUCTION FUNCTION

Describes the technology that the firm uses to produce
goods and services.

The firm’s output can be produced by a variety of
capital–labor combinations.

The marginal product of labor is the change in output
resulting from hiring an additional worker, holding
constant the quantities of other inputs.

The marginal product of capital is the change in output
resulting from hiring one additional unit of capital,
holding constant the quantities of other inputs.
17
1. Short-Run Demand for Labor by Firms
Defn. Marginal Product of Labor: The change in output
resulting from hiring an additional worker, holding
constant the quantities of all other input.
Output
Output
140
120
20
100
80
15
60
40
10
5
20
0
Average Product
25
2
4
6
8
Number of workers
10
0
Marginal Product
2
4
6
8
10
Number of workers
The Total Product, the Marginal Product, and the Average Product Curves
18
Defn. Law of Diminishing Returns: Eventually each
additional increment of labor produces
progressively smaller increments of output.
Defn. Value of the Marginal Product (VMP): The dollar
values of the additional output produced by an
additional worker.
VMP = P × MPE
19
 The profits are maximized by the competitive firm
when the value of marginal product of labor is just
equal to its marginal cost.
Dollars
38
VAPE
22
VMPE
0
1
4
8
Number of Workers
The Firm’s Hiring Decision in the Short Run
20
 Profit-Maximizing condition: Labor should be hired
until its marginal product equals the real wage. i.e.,
MPE=W/P
The firm’s demand for labor in the short run is
equivalent to the downward-sloping segment of its
marginal product of labor schedule.
Note: The downward-sloping nature of the short-run
labor demand curve is based on an assumption that
MPE declines as employment is increased.
21
SHORT RUN HIRING DECISION
 Value
of Marginal Product (VMP) is the
marginal product of labor times the dollar value
of the output.
 VMP
indicates the dollar benefit derived from
hiring an additional worker, holding capital
constant.
 Value
of Average Product is the dollar value of
output per worker.
22
 Elasticity of Labor Demand
We measure the responsiveness of labor demand to
changes in the wage rate by using an elasticity. The
short-run elasticity of labor demand, δSR, is defined
as the percentage change in short-run employment
resulting from a 1 percent change in the wage:
δSR = (%△ESR)／ (%△w)
Since the labor demand curves slope downward, an
increase in the wage rate will cause employment to
decrease; the (own-wage) elasticity of demand is a
negative number.
23
Note:
| δSR | > 1: a 1% increase in wage will lead to an employment
decline of greater than 1% → elastic demand curve
| δSR | < 1: a 1% increase in wage will lead to a proportionately
smaller decline in employment → inelastic demand curve
Elastic demand: aggregate earnings↓ when w↑
Inelastic demand: aggregate earnings↑ when w↑
W
D2
D1
W’
D1: elastic demand
D2: inelastic demand
W
24
E1’
E1 E2’ E2
E
2. Market Demand Curve
A market demand curve is just the summation of the
labor demanded by all firms in a particular labor
market at each level of the real wage.
Note: When aggregating labor demand to the market
level, product price can no longer be taken as given,
and the aggregation is no longer a simple summation.
However, the market demand curves drawn against
money wages, like those drawn as functions of real
wages, slope downward.
25
金融相關產業受僱員工概況
金融及保險業
人數
總薪資
主管及監督
66,090 110,019
人員
經常薪
資
銀行業
人數
總薪資
(101)(單位：人、元)
信用合作社
經常薪
資
94,993 30,340 123,007 104,854
人數
總薪資
農會、漁會信用部
經常薪
資
人數
總薪資
其它金融中介業
經常薪
資
人數
總薪資
經常薪資
1,048
96,849
72,628
1,635 61,001 59,857
4,182
112,533
104,724
27,990
65,616
58,980 10,624
75,458
66,776
112
70,506
50,715
83 56,583 51,945
2,915
55,613
50,507
技術員及助 144,25
理專業人員
3
58,334
50,718 32,110
64,511
55,487
365
45,794
41,659
1,362 46,445 45,745
5,323
50,885
46,576
事務支援人 111,24
員
7
47,114
41,752 60,594
52,264
44,997
2,518
44,642
36,150
8,152 42,095 41,317
7,510
43,404
37,447
服務及銷售
工作人員
6,250
50,795
44,644
3,565
52,760
45,745
－
－
－
...
54
37,907
27,403
基層技術工
及勞力工
1,739
44,555
31,781
1,572
46,910
32,855
47
31,032
28,534
27 19,986 19,917
19
10,714
10,714
專業人員
...
...
26
資料來源：勞動部資料庫
http://www.mol.gov.tw/cgi-bin/siteMaker/SM_theme?page=450f92d3
金融相關產業受僱員工概況(續)
其它金融中介業
人數 總薪資 經常薪資
主管及監督
人員
4,182 112,533
專業人員
2,915 55,613
50,507
技術員及助
理專業人員
人生保險業
人數
104,724 14,349
總薪資
其他保險及退休基金輔
助業
財產保險業
經常薪資 人數
(101)(單位：人、元)
總薪資 經常薪資 人數
總薪資
經常薪
資
證券期貨及其他金融業
人數
總薪資
經常薪資
99,840
88,766 2,954 69,987
69,125
59 132,794 132,631 11,523 105,883
86,709
7,982
56,270
52,145
509 59,944
58,194
66 103,070 102,680
5,699 65,584
58,182
5,323 50,885
46,576 77,966
60,161
51,080 5,615 41,299
39,781
134 57,800 56,354 21,378 49,701
46,577
事務支援人
員
7,510 43,404
37,447 16,012
42,481
40,023 5,045 36,938
36,391
86 54,679 54,509 11,330 37,211
33,545
服務及銷售
工作人員
54 37,907
27,403
2,314
48,595
44,808
29,004
...
...
...
124 55,799
39,821
基層技術工
及勞力工
19 10,714
10,714
55
20,760
20,760
－
－
－
－
19 20,772
20,772
183 40,622
－
－
27
3. Long-Run Demand for Labor by Firms
In the long run, employers are free to vary their capital stock as
well as the number of workers they employ.
 Profit Maximization’s Dual Problem – Cost Minimization
Defn. Isoquant: An isoquant describes the possible
combination of labor and capital which produce the
same level of output.
Defn. The Marginal Rate of Technical Substitution: The slope of
an isoquant is the negative of the ratio of marginal
products. The absolute value of the slope of an isoquant is
called the marginal rate of technical substitution.
Defn. Isocost: The isocost line gives the menu of different
combinations of labor and capital which are equally
costly.
28
A profit-maximizing firm that is producing q0 units of
output wants to produce these units at the lowest
possible cost.
→The firm chooses the combination of labor and
capital where the isocost is tangent to the isoquant. i.e.,
MPE/MPK = w/r
→Cost-minimization requires that the marginal rate of
technical substitution equal the ratio of prices.
29
Capital
Note: To be minimizing
cost, the cost of
producing an extra unit
of output by adding only
labor must equal the cost
of producing that extra
unit by employing only
additional capital. i.e.,
C1/r
A
C0/r
P
175
B
MPE/w = MPK/ r
0
100
Employment
The Firm’s Optimal Combination of Inputs
30
COST MINIMIZATION
 Profit
maximization implies cost minimization.
 The
firm chooses the least-cost combination of
capital and labor.
 This
least-cost choice is where the isocost line is
tangent to the isoquant.
 Marginal
rate of substitution equals the ratio of
input prices, w / r, at the least-cost choice.
31
LONG RUN DEMAND FOR LABOR
 When
the wage drops, two effects arise.

The firm takes advantage of the lower price of labor
by expanding production (the scale effect).

The firm takes advantage of the wage change by
rearranging its mix of inputs even if holding output
constant (the substitution effect)
32
 The Effect of Change in w
Increase in w:
(1) Substitution Effect
As w increase, labor cost rises, and more capital
and less labor are used in the production process.
(2) Scale effect
The new-profit-maximizing level of production
will be less. How much less cannot be
determined unless we know something about the
product demand curve.
33
Both the substitution effect and the scale effect work
in the same direction. So these effects lead us to
assert that the long-run demand curve for labor slopes
downward.
Note: In general, if a firm is seeking to minimize costs,
in the long run it should employ all inputs up until the
point that the marginal cost of producing a unit of
output is the same regardless of which input is used.
34
THE IMPACT OF A WAGE REDUCTION
HOLDING COSTS CONSTANT
Capital
C0/r
R
P
75
q0
q0
Wage is w0
25
40
A wage reduction flattens the
isocost curve. If the firm were
to hold the initial cost outlay
constant at C0 dollars, the
isocost would rotate around C0
and the firm would move from
point P to point R. A profitmaximizing firm, however, will
not generally want to hold the
cost outlay constant when the
wage changes.
Wage is w1
35
THE IMPACT OF A WAGE REDUCTION ON
THE OUTPUT AND EMPLOYMENT OF A
PROFIT-MAXIMIZING FIRM
Dollars
Capital
MC0
MC1
p
R
P
150
100
100
150
Output
25
50
Employment
• A wage cut reduces the marginal cost of production and encourages
the firm to expand (from producing 100 to 150 units).
• The firm moves from point P to point R, increasing the number of
workers hired from 25 to 50.
36
SUBSTITUTION AND SCALE EFFECTS
Capital
D
C1/r
Q
C0/r
R
P
200
D
A wage cut generates
substitution and scale effects.
The scale effect (from P to Q)
encourages the firm to expand,
increasing the firm’s
employment. The substitution
effect (from Q to R) encourages
the firm to use a more laborintensive method of production,
further increasing employment.
100
Wage is w0
25
40
50
Wage is w1
Employment
37
TWO SPECIAL CASES OF ISOQUANTS
Capital
Capital
100
q 0 Isoquant
q 0 Isoquant
5
200 Employment
20
Employment
Capital and labor are perfect substitutes if the isoquant is linear (so that two
workers can always be substituted for one machine). The two inputs are
perfect complements if the isoquant is right-angled. The firm then gets the
same output when it hires 5 machines and 20 workers as when it hires 5
38
machines and 25 workers.
ELASTICITY OF SUBSTITUTION
 The
elasticity of substitution is the percentage
change in the capital to labor ratio given a
percentage change in the price ratio (wages to real
interest).

Formula: %∆(K/L)  %∆(w/r).

Interpret a particular elasticity of substitution number as
the percentage change in the capital–labor ratio given a
1% change in the relative price of labor to capital
39
ELASTICITY OF SUBSTITUTION
 Example:
If the elasticity of substitution is 5, then a 10%
increase in the ratio of wages to the price of capital
would result in the firm increasing its capital-tolabor ratio by 50%.
40
4. Marshall’s Rules of Derived Demand
(The Hicks-Marshall Law of Derived Demand)
The factors that influence own-wage elasticity
can be summarized by the four “Hicks-Marshall
Laws of Derived Demand.” These laws assert
that, other things equal, the own-wage elasticity
of demand for a category of labor is high under
the following conditions:
41
1)
When the price elasticity of demand for the
product being produced high;
2)
When other factors of production can be easily
substituted for the category of labor;
3)
When the supply of other factors of production is
highly elastic;
4)
When the cost of employing the category of labor
is a large share of the total cost of production.
Note: (1), (2) and (3) can be shown to always hold.
There are conditions, however, under which the final
law does not hold.
42
(1) DEMAND FOR THE FINAL PRODUCT
The greater the price elasticity of demand for
the final product, the larger will be the decline in
output associated with a given increase in price and
the greater the decrease in output, the greater the
loss in employment (other things equal). Thus the
greater the elasticity of demand for the product, the
greater the elasticity of demand for labor will be.
43
(2) SUBSTITUTABILITY OF OTHER FACTORS
Other things equal, the easier it is to substitute other
factors in production, the higher the wage elasticity of
demand will be.
Note: (1) Sometimes collectively bargained or
legislated restrictions make the demand for
labor less elastic by reducing substitutability
(not technically).
(2) Substitution possibility that are not feasible in
the short run may well become feasible over
longer periods of time, when employers are
free to vary their capital stock.
→ The demand for labor is more elastic in the longer
run than in the short run.
44
(3) THE SUPPLY OF OTHER FACTORS
As the wage rate increased and employers attempted
to substitute other factors of production for labor, the
prices of these inputs were bid up substantially. Such
a price increase would dampen firm’s appetites for
capital and thus limit the substitution of capital for
labor.
Note:
Prices of other inputs are less likely to be bid up in
the long run than in the short run. → Demand for
labor will be more elastic in the long run.
45
(4) THE SHARE OF LABOR IN TOTAL
COSTS
The greater the category’s share in total costs,
the higher the wage elasticity of demand will tend to
be. If the share of labor cost is large, cost increase
due to wage increase is larger. The employer would
have to increase their product prices by more, output
and hence employment would fall more.
Note: This law, relating a smaller labor share with a
less-elastic demand curve, holds only when it
is easier for customers to substitute among
final products than it is for employers to
substitute capital for labor.
46
FACTOR DEMANDS WHEN THERE
ARE SEVERAL INPUTS
 There
are many different inputs.

Skilled and unskilled labor

Old and young

Old and new machines
 Cross-elasticity
of factor demand.

%∆Di%∆wj

If cross-elasticity is positive, the two inputs are said
to be substitutes in production.
47
THE DEMAND CURVE FOR A FACTOR OF PRODUCTION
IS AFFECTED BY THE PRICES OF OTHER INPUTS
Price of
input i
Price of
input i
(a)
(b)
D0
D1
D0
Employment of
input i
D1
Employment of
input i
The labor demand curve for input i shifts when the price of another input
changes. (a) If the price of a substitutable input rises, the demand curve for
input i shifts up. (b) If the price of a complement rises, the demand curve
for input i shifts down.
48
THE CROSS-WAGE ELASTICITY OF DEMAND
The elasticity of demand for input j with respect to
the price of input k is the percentage change in the
demand for input j induced by 1 percent change in
the price of input k. i.e.,
δjk = %△E j / %△Wk
δjk = %△Ek / %△Wj
49
If the cross elasticities are positive (with an increase in
the price of one increasing the demand for the other)
the two are said to be gross substitutes. If the cross
elasticities are negative (and increase in the price of one
reduces the demand for the other), the two are said to be
gross complements.
Note:
Whether two inputs are gross substitutes or gross
complements depends on both the production function
and the demand conditions.
→ Knowing that two groups are substitutes in production
is not sufficient to tell us whether they are gross
substitutes or gross complements.
50
Q&A

Q1：請舉出二個你所知道的以前存在
但現在已經沒有或很少見的工作。(行
業或職業均可) 。

Q2：請從網路世代/行動裝置的觀點解
釋上述消逝的工作。
51