Supply of labour Flashcards
Labour supply
Measures the hours that people are willing and able to supply at a given wage rate
Labour supply curve
-Upwards sloping
-As wages rise, other workers will enter the industry, attracted by the incentive of high pay
-Expansion of labour supply depends on the elasticity of labour supply.
Factors affecting labour supply to an occupation or industry
-Real wage rate and extra pay e.g. overtime pay
-Wages on offer in substitute occupations
-Barriers to entry e.g. a degree
-Changes in the occupational immobility of labour due to work experience
-Net inward migration expands the available labour supply in occupations like the NHS or farming
Non wage factor affecting labour supply
-Job risk and security
-Anti-social hours
-Working conditions
-Career opportunities
-Generosity of occupational pensions
What causes a shift in labour supply?
-A change in net inward migration of workers with relevant skills
-Change in investment in human capital (training and education)
-A change in relative wages in substitute jobs
-Demographic trends e.g. an increase in the number of school leavers
What affects the wage elasticity of labour supply
-Nature of skills and qualifications required to work in an industry
-Vocational nature of work
-Time period-In the SR labour supply tends to be elastic
What are degree apprenticeships?
Higher education courses which combine working with part time study. It can be taken at degree or masters level and can take 3-6 years to complete.
Main advantage of degree apprenticeships
Student benefit by getting a degree without debt, earning while learning and gaining relevant work experience .
Migration and labour supply to key sectors
Many industries and occupations in the UK are highly dependent on migrant workers like:
-Agriculture
-Health and social care
-Construction
-Transport and logistics
