The interaction of labour markets

Question 1

What are wage differentials due to ?

Answer 1

Formal education, Skills qualifications and training, Pay gaps, Wages and skills, Gender and discrimination

Question 2

What is monopsony power ?

Answer 2

When there is only one buyer of labour in the market, ability to set wages

Question 3

Impacts of a monopsony employer ?

Answer 3

Lower wages, which means workers may become unproductive

Question 4

What do trade unions do ?

Answer 4

Aim to protect workers, secure jobs and increase wages the labour market will become more flexible

Question 5

Imperfect information is ?

Answer 5

Some qualified workers might not be aware of higher paying jobs

Question 6

What is bilateral monopoly ?

Answer 6

This is where there is only one buyer and one supplier, monopsony and monopoly in same market

Question 7

Labour market equilibrium is ?

Answer 7

Determined where the supply of labour and demand for labour meet

Question 8

what is geographical immobility of labour ?

Answer 8

obstacles which prevent labour from moving between areas

Question 9

What is occupational immobility of labour ?

Answer 9

Obstacles which prevent labour from changing use

Question 10

Flexibility of labour is …

Answer 10

how willing and able labour is to respond to changes in the conditions of the market

Question 11

What influences these labour immobility factors ?

Answer 11

Trade union power, Regulation, Welfare payments, Training, Infrastructure, Housing (More affordable)