Labor Markets, Wages and Factors That Affect Them

Have your students ever asked you what you earn? Asked a visitor what he or she earns? Do they talk about incomes of famous music stars or athletes?

On July 31 Kentuckiana teachers attended Labor Markets, Wages and Factors That Affect Them, a one- day conference sponsored by the Louisville Branch of the Federal Reserve System and Kentucky Council on Economic Education. The conference included presentations by Fed economist Michael Owyang and Trish Whitcomb, Membership Director of Kentucky Association of Manufacturers and delivered interesting and relevant information that enriches classroom instruction.

“As a high school econ teacher it is beneficial to have the opportunity to hear a Fed economist who is actually using the theories I teach on a daily basis,” claimed one attendee.

Owyang joined the Federal Reserve Bank of St. Louis in October 2000. He received his bachelor’s degree from the University of California, Berkeley, and his master’s and doctoral degrees from the University of California, San Diego.

Dr. Owyang discussed factors that determine wages such as productivity, and increases in human capital through education and training. The most thought provoking part of his discussion centered on factors outside of these which seem to affect wages such as gender, race, marital status and appearance. Discrimination certainly plays a role in wage differentials but Dr. Owyang’s research and of that his colleagues, provided data to help the participants look at these additional factors more closely. He urged the teachers to draw their own conclusions and use this information to discuss these issues with their students in a practical real-world approach. His presentation also addressed questions related to why there are differences in the earnings of women who start families later compared to those who delay childbirth.

Teachers were also provided teaching resources for their classrooms to help improve instruction in economic and financial education.