Labour market Flashcards
Derived demand
demand for a good/service for what it produces, eg labour is demanded for the output it produces
Non percuniary benefits
Benefits offered to workers by firms that are not financial in nature
Participation rate
the proportion of the population of working age who are in employment or seeking work
Minimum wage
a government set minimum wage below which firms are not allowed to pay workers
Maximum wage
a policy under which employers face a wage ceiling, being prohibited from paying a wage above this level
Non wage shifters for Demand for Labour
Productivity
Profitability of employer
Price of product
Product demand (derived)
Price of subs of labour
Price of comps for labour
Non wage shifters for Supply of Labour
- Wage on offer at substitute professions.
- Barriers to entry
- Non pecuniary benefits/costs
- Overtime
- Size of working population
- Value of Leisure time
Factors affecting the wage elasticity of supply for Labour
-Nature of skills required in the job
-Length of training period
-Vocation
-Time
Factors affecting the wage elasticity of demand for Labour
Substitutabilitty of capital for labour
Elasticity of demand for final product
Cost of Labour as a % of total cost
Time
