3.3 Labour Markets part 1

Types of Payment
Wages

paid by the hr

Types of Payment
Salary

fixed cost calculated as yearly figure, paid monthly/fortnightly

Types of Payment
Price rate

$$ per unit of output produced

Types of Payment
Commission

paid % of value of sales made

Types of Payment
Bonus

lump sum paid additionally to salary/wages

Types of Payment
Performance related pay

varies depending on success of business

Types of Payment
Share options

workers receive shares in business

Types of Payment
Fringe benefits

additional non-monetary ‘work-perks’ on top of normal payment

Non-Wage Factors
level of c__

challenge

Non-Wage Factors
c__ p__

career prospects

Non-Wage Factors
d__ involved

danger

Non-Wage Factors
L__ of t__/e__

length of training/education

Non-Wage Factors
e__ needed

experience

Non-Wage Factors
p__ s__

personal satisfaction

Non-Wage Factors
r

recognition

Changes in earnings over a lifetime
1. Level of e

education

Changes in earnings over a lifetime
2. e__: more = more i__

experience, income

Changes in earnings over a lifetime
3. Having a f__:
parents focus more on children = less money

family

Changes in earnings over a lifetime
4. r__: less $$ as people d__ on p__ to cover expense

retirement, depend, pension

Changes in earnings over a lifetime
5. S__ of l__

stage, life

Changes in earnings over a lifetime
6. L__

location

Factors of diff. in earnings of DIFF jobs
> a__ & qualification
> unsocialable hrs
> j__ s__
> lack of i__ abt jobs
> labour i__
> f__ b__

abilities, job satisfaction, info, immobility, fringe benefits

Factors of diff. in earnings of SAME jobs
> d__
> regional diff in d__ & s__
> e__, length of service
> non-m__ rewards are diff

discrimination, demand, supply, experience, monetary

Diff. in Pay for Private / Public Sector
> Lack of p__ m__ in public sector limits revenue & ability to pay more
> Govts are funded by taxpayers so ↑wage = ↑t__
> Public sector jobs are more ‘s__’; t__ off in pay

profit motive, taxes, secure, trade

D__ & S__ determine wages.

demand, supply

what is derived demand?

labour is demanded for goods/services produced, NOT itself

Demand for labour (for supplier)
As ↓__, ↑__

wages, # of workers