Chapter 18: Workers Flashcards
1
Q
Wage factors
A
- Wages
- Overtime pay
- Bonuses
- Commisions
2
Q
Non-wage factors
A
- Job satisfaction
- Type of work
- Working conditions
- Holidays
- Pensions
- Fringe benefits
- Job securite
- Career prospects
- Size of firms
- Location
3
Q
Limiting factors
A
- Qualifications they have
- Skills they possess
- Experience they have
- Location of house
- The more mobile people, the wider the choice of occupation is available to them
4
Q
Wage determinants
A
- Demand and supply of labour
- Relatiuve bargaining power
- Government policies
- Public opinion
- Discrimination
5
Q
National minimum wage
A
- Set above market equilibrium wage rate
- Paying higher wages to workers could raise motiviation and hence their productivity abd higher demand for products arising from higher wages can increase demand for labour
6
Q
Why earnings of occupations change
Change in demand for labour
A
- Change in demand for product
- Change in labour productivity
- Change in the price of capital
7
Q
Why earnings of occupations change
Change in the supply of labour
A
- Change in the labour force
- Change in the qualifications or length of training required to do one job
- Change in non wage benefits of a job
- Change in the wage or non wage benefits of **other **jobs
8
Q
Why earnings of occupations change
Changes in the stage of production
A
- People working in the primary sector are less well paid because they tend to be less skilled
- As an economy develops, the demand for primary sector workers usually declines
9
Q
Why earnings of occupations change
Changes in bargaining power
A
- A change in unions’ bargaining power or willingness to take industrial action can affect earning
10
Q
Why earnings of occupations change
Changes in government policy
A
- Pay of public sector workers likely to rise if gov expands public sectors
- Raising minimum wage
- Improved education may increase the demand of skilled workers
- Government policies on immigration (increased supply of labour from looser laws)
- Introductino of anti discrimination laws
- Advances in technology (can reduce demand for workers)
11
Q
Why earnings of occupations change
Changes in public opinion
A
- How occupations and those who undertake them are viewed can change
12
Q
Why earnings of occupations change
Changes in the earnings of individuals overtime
A
- Earnings increase as people get older (more skilled, productive, experienced)
- Some workers may switch emploiyers in pursuit of higher pay
- Chance that earnings may fall overtime and some may switch to less demanding work
13
Q
Determinants of elasticity of demand for labour
A
- Proportion of labour costs in total costs
- Time period
- Ease with which abour can be substituted by capital
14
Q
Determinants of elsaticity of supply for labour
A
- Qualifications and skill required
- Length of training period
- Level of employment
- Mobility of labour
- Degree of vocation
- Time period (more elastic overtime)
15
Q
Advantages of specialisation
A
- Lower cost per unit produced
- Output per worker increases because they get good at it
- Does not need to be trained to handle a full range of equipment
- Time saved as workers will not have to move from one job to another
