Labour Market Shifts Flashcards
What is derived demand
Demand for a FoP that is derived from the demand of another good/service
Eg the demand for builders is derived from demand for houses
What happens to labour if capital gets cheaper
Demand for labour decrease
What happens if workers move from their country
Labour supply decrease as there are less workers
What happens if workers move to another country
Labour supply will increase in the country they move to because there are more workers migrating into the country
What happens if there is higher income tax
Reduces take home income leading to a reduction in incentive to work leading to a decrease in labour supply
What are non-pecuniary benefits
Benefits of a job other than the wage received
Eg company car, job satisfaction