The Global Labour Market Flashcards
Name 4 factors that affect a shift in demand for labour
price and availability of substitutes, price of complements, productivity, derived demand
Name 6 factors affecting a shift in supply of labour
fringe benefits, location, risk of the job, chance of promotion, skills/qualifications needed, flexibility of hours
what does the backward bending supply curve show
How much money and income it would take for a person to do less hours at work compared to the substitution effect where they give up free time to earn a higher wage
What happens in a skills shortage
firms turn to training employees which is expensive or immigration
what is Beckers theory in discrimination
Firms will pay a higher cost to not work with a certain group of people
what is the statistical theory
Firms pay lower costs based on generalisations
Name two types of immobility of labour
Geographical or occupational
what is asymmetric or imperfect information
there is a shortage of info about available vacancies
name 4 types of collective bargaining in Trade Unions
strikes, lockouts, work to rule, go slow
How many people do Amazon employ in 1 town
1 in 3
What do monopsony’s face and what does this mean
the entire supply curve so to recruit an extra unit of labour is more expensive as everyone has to be on same wage so they recruit less
What do monopsonys and TU’s do
Cancel each other out
Who suggested that Minimum wage would create unemployment and how
Milton Friedman and if the wage was higher than NMW
Name 4 impacts of minimum wage
Cost push inflation, equality increases, exports decrease due to a lack of international competitiveness, an increase in derived demand that makes the wage justified as more money is put into circular flow.
