The Labour Market Flashcards
What is the Labour market?
Where supply of labour (offered by workers) interacts with demand for labour (from firms).
How are wages determined?
Wages are determined by the interaction of demand and supply.
What are some factors affecting supply of labour?
Wage rate
Education / training
Fringe benefits (holidays etc.)
Other payments (bonuses etc.)
What are some factors affecting demand for labour?
Wage rate
State of the economy
Productivity
Profitability
What factors could influence supply of labour?
Migration
Income tax (%of income taxed)
Benefits
Minimum wage changes
Trade unions (increase wages)
What are some salary deductions in the UK?
Income tax
National Insurance
Pension contributions
Student loan repayments
What is gross pay?
Total pay before deductions
What is net pay?
Pay you ‘take home’ after deductions
