Supply of labour
The overall supply of labour depends on the size of working population. Although households supply labour not every person in the household will be working - they may still be at school or retired for example. The working population are those people over school age that are willing and able to work.
Factors influencing the supply of labour
Net migration. a rise in immigration relative to emigration would cause the supply of labour to rise.
Real wages of other jobs e.g. if real wages of teachers relative to other professions rose then workers would retrain and supply therefore the supply of labour to rise - signal and incentive
Non monetary factors e.g. job satisfaction, job security, promotional opportunities, good pensions, hours of work etc, would cause supply of labour to rise
Income tax - a reduction in income tax would encourgae people to seek work; incentive to work signal to firms supply of labour has risen
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