4.1.6.2 Influences upon the supply of labour to different markets Flashcards
What determines the supply of labour to an occupation?
Number of workers willing & able to work × hours they can work.
Influenced by monetary (wages) and non-monetary factors (job satisfaction, conditions).
What does the labour supply curve show?
Upward-sloping relationship between wage rate and workers willing to work.
Higher wages → more workers enter the market.
Give 3 non-monetary influences on labour supply.
Job satisfaction (e.g., meaningful work).
Working conditions (e.g., safety, flexibility).
Leisure preference (work-life balance).
How do demographics affect labour supply?
Aging population → fewer workers.
Immigration → ↑ supply (especially at lower wages).
Education trends (e.g., more students → delayed entry).
Why does migration increase labour supply?
Migrants are typically working-age → ↑ supply at all wage levels.
Especially affects low-wage jobs (if migrants come from lower-wage economies).
How do ‘advantages of work’ boost labour supply?
Childcare access, promotion opportunities, benefits (e.g., holidays).
Example: Subsidized childcare → more parents can work.
How does leisure time affect labour supply?
Leisure is a substitute for work → higher taxes or dependents may reduce hours worked.
Early retirement/part-time work ↑ leisure preference.
How do trade unions influence labour supply?
Attract workers (protect rights) but may deter some (strike restrictions).
How do taxes/benefits affect labour supply?
High taxes + generous benefits → disincentive to work (e.g., welfare traps).
How does training affect labour supply?
High qualifications needed → ↓ supply (barrier to entry).
Government subsidies for training → ↑ supply (e.g., NHS bursaries).
What causes the labour supply curve to shift?
Right shift (↑ supply): Immigration, better working conditions, training subsidies.
Left shift (↓ supply): Aging population, high taxes, stringent qualifications.
Draw a labour supply curve shift due to immigration.
Original curve (S₁) → New curve (S₂) rightward (higher quantity at all wage levels).
Give an example of non-monetary factors affecting labour supply.
Tech jobs: High job satisfaction (creative work) ↑ supply despite long hours.
How could a government increase labour supply?
Subsidize training (e.g., apprenticeships).
Improve childcare support (help parents work).
