3.5.3 Flashcards
What are the main causes of differentials in wages between occupations?
-Compensating wage differentials
-Different skill set
-Differences in labour productivity and revenue creation
-Trade unions
-Artificial barriers to labour supply
-Employer discrimination
What is compensating wage differentials for a cause of differences in wages in occupations?
For reward, risk-taking, working in poor conditions and unsocial hours.
What is different skill set for a cause of differences in wages in occupations?
Market demand for skilled labour grows more quickly than for semi-skilled workers.
What is differences in labour productivity and revenue creation for a cause of differences in wages in occupations?
Workers whose efficiency is high and generate revenue for a firm often have higher pay.
What do trade unuions do to cause differences in wages in occupations?
Might use their collective bargaining power to acheive mark-up on wages compared to non-unuion members.
What are artificial barriers to labour supply for a cause of differences in wages in occupations?
Professional exams needed for a job or migration controls.
What is employer discrimination for a cause of differences in wages in occupations?
A factor that cannot be ignored despite many years of legilsation in place.
What is the gig economy?
Fragmented work where someone is given a task for a certain amount of time.
The Gig economy is a labour market which is characterised by?
Short-term contracts or freelance work
What are the benefits of a gig economy for businesses?
-Reduced fix costs- lower payroll expenses.
-Reduced investment, such as ubers use own vehicles.
-Flexibility in managing hours for expected demand for products.
What are the benefits of a gig economy for workers?
-Flexible hours/ control over when to work
-Ability to work from hour (more autonomy)
-A common way for people to earn extra income
-Less risk of getting stuck in routine jobs
What are the drawbacks of the gig economy for workers?
-Doubts of true flexibility of hours
-Lack of paid vacation/sick/leave
-Job and income uncertainty make it harder to get a mortgage
-Inadequate investment in worker training
What are wider issues of the gig economy?
-Shrinking of the tax base will hit revenues
-Reductions in road safety/ more accidents (delivery drivers usuing un-licensed vehicles)
What are the possible microeconomic effects of an ageing population?
-Changing patterns of consumer demand in markets affects profits for businesses.
-Impacts housing market
-Impact on labour market for different jobs.
What are the possible microeconomic effects of an ageing population?
-Impact on government welfare spending and future tax revenues.
-Impact on the rate of growth of productivity and long-term GDP growth
-Impact on UK competitviness if the median age continues to rise rapidly.
What are the possible microeconomic effects of robotics?
-Impact on productivity, costs and profits of firms/industries at cutting edge.
-Impact on demand for, supply of labour in specific jobs and the real wages paid.
-Impact on consumer welfare, lower prices
What are the possible macroeconomic effects of robotics?
-Effects on employment and unemployment from extensive capital-labour substitution
-Effects on competitiveness and exports and changing patterns of trade
-Effects on government financing
What are the factors behind trade union declines?
-Impact of legislation that reduced power for industrial action
-Rise in flexible markets
-De-industrialisation
-Globalisation has reduced bargaining power of employees.
What are a trade unions key role?
-Protecting and improving real living standards/wages
-Protecting workers against unfair dismissal
-Promoting improvements in working conditions, work-life balance
-Promoting better workplace training
-Protection of pension rights
long-term decline in union membership impacts the trade union and labour market how?
Reflects growing flexibility of UK labour market including zero-hour contracts and decline of heavy industry and shrinking public sector
Trade union influence on pay impacts the trade union and labour market how?
It depends on trade union density in an industry and the credible threat power they have with possible industrial action
