Th3.5: Factors Influencing Supply of Labour

Question 1

What does the supply of labour curve show?

Answer 1

the ability and willingness of people to make themselves available to work at different wage rates

Question 2

What are the first four factors influencing the supply of labour?

Answer 2

wages
population and distribution of age
non-monetary benefits
education/training/benefits

Question 3

What are the final three factors influencing the supply of labour?

Answer 3

trade unions and barriers to entry
wages and conditions of other jobs
legislation

Question 4

Population and distribution of age

Answer 4

a high population will mean there is a large supply of labour. the distribution of age is important as there needs to be many people of high working age to ensure there’s lots of labour

Question 5

Non-monetary benefits

Answer 5

supply of labour will increase if there is a high job satisfaction e.g vocational jobs. some jobs are attractive as they are close or have a good social life, whilst others offer perks such as free healthcare. factors such as holidays are important too

Question 6

Education/training/qualifications

Answer 6

more educated workers means there is a higher supply of workers - this is particularly important for some industries which require qualifications. occupations which require high education levels may suffer from a lower supply of labour

Question 7

Trade unions and barriers to entry

Answer 7

trade unions may be able to restrict the supply of labour by introducing barriers to entry, for example you have to have a degree for teaching

Question 8

Wages and conditions of other jobs

Answer 8

if many jobs in a local area are considered to be unpleasant and offer low wages, then supply for alternatives will be higher

Question 9

Legislation

Answer 9

the government rules can affect supply of labour, e.g school leaving age or retirement age