3.5.2 - supply of labour

8 factors affecting the supply of labour

training time

comparative wage rates

migration policy

tax

working conditions

trade union power

benefits

social trends

training time

long = less supply of labour

comparative wage rates

higher = more supply of labour

eg. working in priv hospital vs nhs

migration policy

more migration = more supply of labour

application: brexit

tax

high income tax = less supply of labour

working conditions

nice working conditions = more supply of labour

eg. relaxed environment in tech

trade union power

lots of power = more supply of labour

benefits

more benefits = less supply of labour

social trends

eg. covid - restaurant workers felt unsafe, work from home

when does market failure in the labour market happen

when workers are unable to easily move between jobs

2 reasons for market failure in the labour market

geographical immobility of labour - language, family, accommodation, transport

low occupational mobility of labour - non-transferrable skills
- big issue when there’s structural unemployment

4 gov interventions to fix this market failure

education/training - more skills

employer subsidies - more employees (eg. disabled, don’t have right skills)

relocation subsidies - help workers get to job

prov of information - job centres, reducing discrimination