16. Labour Markets Flashcards
What influences jobs that people choose?
Wage and Non-wage factors
What is a Wages?
Money paid on calculation of hours worked
What is a Salary
Paid monthly regardless of output of the worker
What is a Piece rate?
A fixed amount paid per piece of item made
What is a Commission?
A paid % of the value of the good sold
What is a bonus?
Additional lump sum of money
What is Labour demanded for?
Goods and services it can produce
What factors influence the demand for Labour?
Total Demand in an Economy
The productivity of labour
Cost of labour
Cost of technology
What is the Minimum Wage?
The lowest amount can pay its workers as set by the government
What is the minimum wage for people starting out in work?
$14.16/hour
What happens if the Minimum Wage changes?
Increase in demand for labour
or a decrease in demand for labour
What are the advantages of Minimum Wage?
Worker are not exploited
An incentive to work as there is guaranteed pay
Low-income workers may have more money to spend
What are the disadvantages of Minimum Wage?
High earners will want to maintain the wage differences between them and low earners
Demand for Labour decreases and unemployment
What are Non-Wage factors that influence a person decision to work
Career Challenge Danger Level of skill required Personal satisfaction
What does the Supply of Labour consist of?
People of working age who are willing and able to work
Why might business demand for labour change?
Change in consumer demand
Population change
Change in productivity
Change in the cost of Capital
Why might the Supply of Labour change?
Change in benefits of an occupation
Change in quality of education
Change in age demographics
What is the Labour Force Participation Rate?
% of the working population that is working rather than being unemployed
What impacts the Working Population?
Availability of Welfare
Changing of social climate and constructs
Geographical mobility
What are wage differentials?
Difference in wages between employees and occupations
What are the reasons for wage differentials?
Abilities Working hours Labour immobility Job satisfaction Difficulty Public sector vs Private sector Racism Discrimination
