Influences upon the supply of labour to different markets

Question 1

What are the monetary factors that influence the supply of labor to a particular occupation?

Answer 1

Monetary factors include the wage rate offered in the occupation. Higher wages attract more individuals to supply labor, increasing the number of workers willing to work in that occupation

Question 2

What non-monetary factors affect the supply of labor to a specific occupation?

Answer 2

Non-monetary factors include job satisfaction, working conditions, status associated with the job, and the ease of training and qualifying for the occupation.

Question 3

How does the labor supply curve illustrate the relationship between wage rates and the number of workers willing to work in an occupation?

Answer 3

The labor supply curve typically slopes upward, indicating that as wages rise, more individuals are willing to supply labor to the occupation. This reflects the direct relationship between wage rates and the quantity of labor supplied.

Question 4

What causes supply of labour to shift?

Answer 4

1) wage on offer for substitutes
2) Barriers to entry (skills/qualifications
3) Non monetary characteristics of the job (health/education benefits)
4) Improvements in occupational labour
5) overtime

Question 5

What is elasticity of labour supply?

Answer 5

Measure of the responsiveness of labour supplied given a change in the wage rate (think if wages for elastic, low skilled labour, increase we would see more employment but for high skilled inelastic labour we’d see less jobs filled)

Question 6

What affects elasticity of labour?

Answer 6

1) Skills required (qualifications and barriers to entry)
2) length of training period
3) vocation e.g teaching and nursing will be more inelastic as they aren’t money motivated. (Low monitory motivation)
4) Time (think qualifications)