24 Supply of labour Flashcards

1
Q

Supply of labour

A

Ability and willingness of households to work at different wage levels

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2
Q

Factors effecting supply of labour (wage)

A

Causes movement along curve - extension or contraction

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3
Q

Factors effecting supply of labour (wages in other industries)

A

Rational for a households to want to supply labour to industry offers the highest wages
- a change in wage in a different industry is likely to affect supply of labour

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4
Q

Factors effecting supply of labour (non-monetary benefits)

A
  • Longer holidays, training, job security
  • occupations with high levels of non-monetary benefits are likely to have a higher number of workers that are willing and able to offer services
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5
Q

Factors effecting supply of labour (qualifications or skills needed )

A

Some occupations require qualifications or skills that both everyone has
- the more qualifications needed the fewer people who an supply labour
- cost of qualifications can also be a factor

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6
Q

Factors effecting supply of labour (demographics)

A

Population structure
- number of people at working age
- number of retired people
- migration of workers

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7
Q

Factors effecting supply of labour

A
  • wage
  • wages in other industries
  • non-monetary benefits
  • qualifications or skills needed in the job
  • demographics
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8
Q

Factors effecting wage elasticity

A
  • availability of workers
  • skills and qualifications
  • nature of the job
  • labour immobility
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9
Q

Factors effecting wage elasticity (availability of workers)

A

Affects response to a change in wage
- high unemployment a small change in wage leads to large change in quantity of labour

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10
Q

Factors effecting wage elasticity (skills and qualifications)

A

As wage increases, more workers might want to offer labour but lack of skills or qualifications msuy stop them from doing so
- more skills and qualifications more inelastic

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11
Q

Factors effecting wage elasticity (nature of jobs)

A
  • person could never drawn to job even if wages are low
  • some jobs may be undesirable even though they have high wages
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12
Q

Factors effecting wage elasticity (labour mobility)

A
  • rational for worker to change occupation if wage is higher
  • some professional workers may be unwilling to move into manual job or geographical areas even if wage is higher
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13
Q

Short run and long run supply of labour

A

Short run - inelastic - can’t swap jobs as they need skills or qualifications
Long run - elastic - people can train to swap to different jobs

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