Elasticity of Labour Supply Flashcards
1
Q
What is the elasticity of labour supply?
A
How responsive is the supply of labour to a change in wages
2
Q
What factors influence the elasticity of labour supply?
A
skills and qualifications
unemployment levels
time
3
Q
Skills and qualifications
A
the level of skill or qualification needed to enter a profession
many skills needed = inelastic
4
Q
Unemployment levels
A
how many people are unemployed in the economy
unemployment low = inelastic
5
Q
Time
A
short run - no time to train = inelastic
