ABSTRACT

Some public sector actions operate to reduce the demand for labor, whereas others decrease the supply of labor. Whereas disability benefits reduce the supply of labor, the rules and activities of the Occupational Safety and Health Administration operate to reduce the demand for labor. The disability program is a cogent example of a government mandate reducing the labor supply. If civil rights laws are an extremely conspicuous aspect of government's impact on the employment process, judicial narrowing of employers' right to fire is among the least publicized. The Family and Medical Leave Act of 1993 is the most recent example of government-imposed costs on the employment process. Without doubt, of all the government regulations affecting employment, the statutory minimum wage has been the focus of the greatest amount of professional attention. An important arid often overlooked factor is the rising load of regulation and mandates that government is imposing on business and other employers.