labour markets and poverty Flashcards
Demand for Labour
Firms demand labour based on wage rates
Supply of Labour
Number of workers willing to work at a given wage rate
MRP
MPP X P
Inelastic
A large increase in wages for pilots, only few more workers will be hired as there aren’t enough skilled
Elastic
Small increase in wages, large amount of new workers
Monetary factors
bonuses, pensions , commission , shares , over time
Non - monetary factors
security , training, promotion , career , charity, experience
Absolute poverty
A condition characterised by severe deprivation of basic human needs
Relative poverty
Occurs when income is below a specified proportion of average income
Trade Union
A voluntary organisation designed to protect workers
Discrimination
Where workers are treated unfairly
If a Labour Market includes a monopsony will it be perfect or imperfect?
Imperfect
Reasons for the gender pay gap
Different sectors of work, maternity leave, occupational segregation
Collective Bargaining
Where the employer and the trade union discuss annual pay rises and conditions of work
Private Sector
Privately owned
