3.3.1 Labour Markets part 2

Factors of Demand for Labour
1. total d__ in e__
> economic b__ = more d__ for labour (as consumers want more)

demand, economy, boom, demand

Factors of Demand for Labour
2. P__ of labour

productivity

Factors of Demand for Labour
3. Change in non-w__ employment costs e.g. sick leave
> as if these increase, D for labour __

wage, decreases

Factors of Demand for Labour
4. C__ of labour

cost

Factors of Demand for Labour
5. Cost of labour compared to m__
as tech improvements = c__ to use capital machinery instead of labour

machinery, cheaper

Factors of Demand for Labour
6. P_ change

pop

Supply of labour consists of

people of working age & both willing & able to work

Factors of Supply of Labour
1. change in pop/d__
> more pop = more S of labour

demographic

Factors of Supply of Labour
2. change in b__ of occupation
> lack of prospects, less h__ = less S of labour

benefits, holidays

Factors of Supply of Labour
3. change in p__ of e__
> if schools stopped teaching acct, = less accountants

provision, education

Factors of Supply of Labour
4. Change in s__ leaving a__
> higher = less S of labour

school, age

Factors of Supply of Labour
5. change in r__ age
higher = more S of workers

retirement

Define labour force.

portion of the working age pop that is either employed or unemployed

Minimum Wage
define national minimum wage.

legal min firms can pay employees

Why min wages?
> e__ wage rate < $$ workers need to meet basic n__
> stops e__ of workers
> reduce income i__

equilibrium, needs, exploitation, inequality

What is happening at NMW?

S > D, = unemployment

Effect of Min. Wages
> u__ people have greater incentive to work
> low i__ workers can spend more
>>> more D in economy = compensates for job l__
> firms choose c__ intensive production over labour
> more c__ for firms = __ prices for consumers

unemployed, income, losses, capital, cost, higher

Define Living Wage

hrly wage worker needs to pay for necessities of life & participate as active citizen in community

Role of Govt in Labour Markets
1. O__ & regulate practices of powerful t__ u__/businesses
> powerful employers can set __ wages bc they employ a lot of the pop. with those skills
> powerful trade unions with lots of S of workers can inrc w_ without incr in productivity

outlaw, trade union, low, wages

Role of Govt in Labour Markets
2. outlaw d__

discrimination

Role of Govt in Labour Markets
3. reduce u__ via s__ for training

unemployment, subsidies