labour supply Flashcards
1
Q
labour supply
A
Is the number of hours people are willing and able to supply at a given wage rate .
2
Q
income effect
A
if they are earning more in less hours they will work less hours
3
Q
substitution effect
A
higher wages will mean they value work over leisure
4
Q
factors that cause a shift
A
- Wages in sub-industry
- Barrier to entry
- Improvement in occupational mobility
- Non-monetary characteristics – risk , working conditions
- Net migration of labour
5
Q
elasticity of supply (change of wage rate) if low skilled
A
elastic
6
Q
elasticity of supply if high skilled
A
inelastic
7
Q
wage differentials
A
the difference in wages between workers with different skills in the same industry, or between workers with comparable skills in different industries or localities
8
Q
factors of wage differentials (how)
A
- Reward for human capital
- Different skill level
- Compensation wage differentials – night shift , risk
- Trade unions – collective bargaining
- Employer discrimination
9
Q
A
