LABOUR MARKET-ECONOMICS

Labour Market

The interaction between employers seeking to hire labor and employees providing labor services.

Demand for Labour

The number of workers that firms are willing and able to hire at the existing wage rate.

Wage Rate

The amount of money paid to workers in exchange for their labor services.

Derived Demand

The demand for labour that arises from the demand for the final product it helps to produce.

Productivity of Labour

The amount of goods and services produced per labor unit in a given period.

Supply of Labour

The amount of labor services workers are willing and able to offer in the market at existing wage rates.

Equilibrium Wage Rate

The wage at which the quantity of labor demanded equals the quantity of labor supplied.

Minimum Wage Legislation

A law that sets the lowest legal wage that can be paid to workers.

Trade Union

An organization of workers that aims to protect and improve the conditions and pay of its members.

Collective Bargaining

Negotiations between employers and a group of employees aimed at reaching agreements to regulate working conditions.

Wage Differentials

The variations in wages paid to different workers performing different jobs.

Backward Bending Supply Curve

A labor supply curve shape that indicates that beyond a certain wage rate, increased wages lead to decreased labor supply.

Factors Determining Labour Demand

1. Wage rate; 2. Demand for final goods; 3. Availability of substitutes; 4. Productivity of labour.

Factors Determining Labour Supply

1. Wage rate; 2. Qualification and training; 3. Retirement age; 4. Female participation; 5. Working conditions; 6. Immigration and emigration; 7. Total population; 8. Minimum wage legislation; 9. Labour laws.

Job Security

Protection against arbitrary dismissal and assurance of continued employment.