1.2.5 The Labour Market Flashcards
Who provides the supply and demand for labour?
Demand = business/government
Supply = household
What are 3 factors affecting the demand for labour?
Available substitute, machinery, productivity, changed in wages.
What are 3 factors affecting the supply for labour?
Retirement age, migration, wage rate, working conditions.
How can a government overcome the challenges of an aging population?
Government can increase retirement age or increase tax.
What is a migration?
Migration is the movement of labour from one country to another
Migration, people leaving the country, will decrease the labour supply
What is an immmigration?
Immigration is process through which individuals become permanent residents or citizens of another country.
Immigration, receiving more people, will increase the labour supply.
What is a formula of net migration?
Net migration = immigration (in) - migration (out)
Advantages and disadvantages of immigration:
Advantages:
A richer and more diverse culture
More supply of labour/skilled labour — governments don’t have to invest as much in training
Disadvantages:
Over crowding
Disagreements between different religions and cultures
What the expat population in Dubai is…
British? — more than 240,000 = around 75%
French? — over 30,000 = 5%
American? — 40,000 people
What are the requirements to enter and live in UAE as an expat?
Residence Visa and Work Permit.
How does robotics affect the demand of labour?
If machinery (robotics) will increase, the demand will increase, because the amount of a product will also increase.
School leaving age:
Pakistan 10yrs old and many countries 18yrs old
School leaving age is not necessarily the same as working age
Lower leaving age would mean an uneducated workforce, but a higher supply of a labour earlier on.
Higher leaving age would mean an educated workforce, but a lower supply of labour.
The global literacy rate rate for all people aged 15 and above is 86.3%. The global literacy rate for all males is 90.0% and the rate for all females is 82.7%. Why the difference between males and females?
Because some cultures prefer that females finish the school earlier than males, and focus more on marriage and agriculture.
How the school leaving age affects the supply of labour?
If it will be earlier school leaving age, so workers will be uneducated, weak workforce, and just will disturb work activity.
If it will be normal school leaving age, so workers will be more response what they are doing and will have stronger workforce.
Consider the pros and cons of an early school leaving age.
Pros: more workers for easy work
Cons: uneducated workers
If you were prime minister, what would you set the school leaving age as and why?
I would set the school leaving age as normal age, because workers and employees need to be educated, professional, and response what they are doing, for what and why.
What are the benefits of an early school leaving age to the economy?
More workers for easy work — increasing supply labour.
How might the government ensure a high quality labour force?
The government can set the earlier school leaving age, so when they are will finish school earlier, like Pakistan 10yrs old, they can go straight to work. So the quality of workers will increase.
Education and training:
Generally, the government will be responsible for providing education and firms will be responsible for providing training.
What the difference is between education and training?
Education is when you study and learn new subjects and topics.
Training is when you practising skills, which are relevant to a job.
Why are the responsibilities split up this way?
The government ( is responsible for public good ) — education is a public good ( so people can be educated for future work ).
Firms provide training ( so people what they learnt in school/university now it is using in work ) to increase quality of labour + productivity.
Why should training for all jobs be different?
Because all jobs are different: some jobs — like doctors need one type of education; another jobs — teacher need another type of education.
Different skills for different job.
Why is education not always enough e.g. why might a dentist need continued training throughout their career?
Because they can revise extra materials — so it can help for job.
There may be advancement in technology need to maintain skills.
Be able to handle difficult scenarios.
