Microeconomics - Influences upon the supply of labour to different markets Flashcards
Factors that influence the supply of labour to a particular occupation
s calculated by the number of workers willing and able to work
at the current wage rate, multiplied by the number of hours they can work
The wage rate
/ shape supply curve shows the proportional relationship
between how much the worker is paid and the number of workers willing and
able to work.
Demographics of the population - The more people there who are able and willing to work, the higher the
supply of labour
Migration - Migrants are usually of working age, so the supply of labour at all wage rates
tends to increase. Migration particularly affects the supply of labour at the
lower wage rates, because migrants are usually from economies with average
wages lower than the UK minimum wage
Advantages of work (rewards for working e.g. holiday entitlements, chances to be promoted etc.)
Leisure time - Leisure is a substitute for work, which is why part-time work and early retirements are attractive options for some people.
People have to choose whether to spend their time on work or leisure. This is
influence by age, the amount of taxes paid, how many dependents the
worker has and income from not working.
Trade unions- These could attract workers to the labour market, because they know their
employment rights will be defended
Taxes and benefits - If taxes are too high and benefits are too generous, people might be more
inclined to withdraw from the labour market
Training - If a lot of training or high qualifications are required for a job, then the supply
of labour may fall. However, if the government subsidise training, it is easier
for workers to gain the necessary skills for a job, so the supply of labour could
increase.
