Labour Markets Flashcards
Determinants of Demand for Labour
The state of the economy
Growth in particular markets
The productivity of Labour
Changes in Technology
How does the state of the economy affect Demand for Labour?
If the economy is growing then businesses will probably be to, and so they need more workers
How does growth in the economy affect Demand for Labour?
As the demand for smartphones has increased demand for programmers and salespeople will increase
How does the productivity of labour affect Demand for Labour?
If workers can make more then firms will want them more
How does changes in technology affect Demand for Labour?
Automation will replace workers shifting demand to the left, mechanisation assists workers shifting demand to right
Determinants of Supply for Labour
The education/experience required for the job
The size of the working age population
Non monetary factors
Wage in other jobs
How does education/experience required for the job affect Supply for Labour
The harder it is to do a job the fewer people will be able to supply their Labour
List non monetary factors
Job satisfaction
Opportunities for promotion
How sociable are the hours
How many holidays
What is automation?
Replacing workers with machines
What is mechanisation?
Assisting workers with machines
What are Wage Differentials?
Wage differentials are the difference in earnings between different groups based on their skills, education, experimental and the nature of the job they do
What is gross income?
The amount you earn before deduction
What is net income?
The amount you earn after deductions