The labour market

• Bilateral monopoly: Market in which there is a single seller and a single buyer.
• Human capital: The economic value of an individual's skills, experience, training, etc.
• Marginal productivity theory: Theory stating demand for labour is derived from MRP.
• Marginal physical product (MPP): Additional output each unit of labour can produce.
• Monopsony power: The ability to set prices based on bargaining power.
• Negative discrimination: When employers undervalue the marginal revenue productivity of a worker.
• Trade union: Organisation within or outside a firm campaigning for the rights of the workers.
• Positive discrimination: When employers overvalue the marginal revenue productivity of a worker.
• Wage differentials: Differences in wages of different groups of workers, or workers in the same occupation.
• Wage discrimination: Paying an employee lower wages because of their race, gender, religion, disability, sexual orientation or some other ‘protected characteristic’.