3.2 Flashcards
What is the difference between formal and informal employment?
Formal employment is recognised officially, meaning that worker’s rights apply as well as certain health and safety regulations. Informal employment is therefore unofficial and have no regulations (eg: no laws about working age) with unfair hours to pay ratios. As a result, officially recognised jobs are taxed from there wages while unofficial jobs are not taxed.
What are the positives and negatives of formal employment on the economy?
Formal employment means that the government actually receives more tax money to therefore use elsewhere in investment to healthcare, infrastructure etc, all which will further aid businesses. However, these companies d not earn as much as they could as worker’s rights prevent them from working too many hours a week, meaning a company must hire more workers to get the amount of work they want done completed.
What are the positives and negatives of informal employment on the economy?
Informal employment, which is not taxed, reduces the governments finances for investment as tax profits decrease. However, businesses can earn more money for themselves as they can under pay their workers whilst making them work for extortionate amounts of time, all to maximise their profits and minimise their costs.
What are the four economic sectors and how do their workers differ in skill and education level?
The primary sector collects raw materials and requires very little education and a low level of skill (to operate equipment). The secondary sector involves turning the raw materials into a product, with some education required and a certain level of skill (wood carving, smelting). The tertiary and quaternary sectors require good levels of education and skill as they are services to people and research and development to improve these services.
In the four economic sectors, which is most likely to have informal employment and why?
Primary sector jobs require low levels of education, therefore workers who cannot afford to be within formal employment because they are under skilled will go into informal employment, most likely in these low skilled jobs.
How does the level of development affect how much of a countries GDP is made from the informal economy?
Developing countries will generally have a lower skilled work force due to poorer education because of a weaker economy. As a result, more of these lower skilled workers will be in the informal economy because in developing countries primary sector jobs still don’t pay well, so they may as well avoid tax. To conclude, the development levels will dictate the skill of the average worker and therefore the sort of life style they can afford, showing developing countries to have a larger informal economy and therefore GDP made up from informal economy.
How does a countries development affect the size of the less skilled economic sectors (primary and secondary) ?
Developed countries have smaller primary sectors as it is low paying work and they have higher levels of education, meaning they could be appearing more money. Secondary sector jobs are in low demand as large companies can get products manufactured from abroad at a fraction of the cost in countries with less strict regulations about minimum wage, working hours and working conditions.
How does a countries development affect the size of the more skilled economic sectors (tertiary and quaternary) ?
Developing countries do not have large quaternary sectors if any because they have lower skilled workers and there are not enough workers of high education to create a large sector. Furthermore, the tertiary sector, such as healthcare, is not very large for the same reason, though developing countries still have a prominent tertiary sector.
Explain why the working conditions in developing countries differ largely from working conditions in developed countries…
Developed countries tend to have more rules and regulations about the conditions workers must have. As developed countries are highly formal economies, almost all businesses adhere to these regulations and provide the conditions regpquired by law, whereas informal economies (which are much larger in developing and emerging countries) do not abide by these rules. Moreover, these rules in developing countries are generally lesser because the overall quality of life is lower, therefore working conditions follow such quality.
Name some of the push factors for developing or emerging countries and why…
Developing and emerging countries offer lower qualities of life as they have weaker infrastructure. This means that jobs will not pay well, meaning it is harder for people to make a living. As well as this, there would be less jobs around because it is difficult for successful businesses to grow in areas with low infrastructure, a weak economy and low skilled workers.
Name some of the pull factors for developed countries and why…
In developed countries, the infrastructure and the economy are much stronger. As a result of this, more jobs are offered with higher pay because jobs in the tertiary and quaternary sector are a lot more common than the low skilled jobs in the primary or secondary sector which pay much less. People can therefore live better lives in developed countries as they earn more money.
Why does economic change lead to either growth or decline or a city?
Growth and decline happen because of the new push and pull factors of the city which are created through the economic change. If there is an increase or decrease in jobs it will result in an increase or decrease in population, equally so with wages.
What are 2 rules/regulations of formal employment?
Formal employment has many regulations, the most known ones being the minimum age of the employee and the minimum wage you can pay them. The minimum wage in the UK is £6.70 an hour and you must be at least 16 to work full time (but workers rules dont apply until 18).
What is the largest economic sector in developing countries compared to developed countries?
Developing countries would probably have a large primary sector and then ship in manufactured goods. On the other hand, developed countries would have larger economies and skilled workers to manufacture goods for them, so they do not need to trade raw materials for manufactured ones. Instead, they have large tertiary sectors as primary an secondary sector goods sell at low prices, which would not allow for such a large economy.
What type of country (developing, emerging and developed) has the largest quaternary sector and why?
Developed countries have the largest quaternary sector because quaternary sector jobs require decent levels of education, which is provided by developed countries, whilst developing and emerging countries use their lower skilled workers in the primary and secondary sector.
