Micro 6.2

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What does the supply curve for labour show?
The relationship between the wage rate and number of workers willing and able to work in a particular occupation.
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What is the supply of labour in a particular occupation influenced by?
Monetary factors such as the wage rate, and non-monetary factors such as job satisfaction and working conditions.
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What are 3 determinants of the supply of labour?
Wage rates, size of the working population, non-monetary factors.
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How do wage rates affect the supply of labour?
Higher wages will lead to an extension along the supply curve for labour.
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How does the size of the working population affect the supply of labour?
If the number of people of working age increases, the potential supply of labour increases.
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What do non-monetary factors include?
Relative satisfaction, job status, promotion prospects, job security, working conditions and holiday pay.
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What will a change in wage rate lead to?
A movement along the supply curve for labour.
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What will a change in other determinants lead to?
A shift of the supply curve for labour.
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What is elasticity of supply for labour?
A measure of the responsiveness of the quantity of labour supplied following a change in the wage rate.
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How is elasticity of supply for labour calculated?
% change in quantity of labour supplied / % change in wage rate.
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What are 3 determinants of elasticity of supply for labour?
Time, length of training period, vocation.
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How does time affect elasticity of supply for labour?
The longer the time period, the more elastic the supply of labour as individual workers are more able to switch occupations and/or complete required training courses.
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How does the length of training period affect elasticity of supply for labour?
Jobs requiring a long training period or a significant relevant experience will tend to have an inelastic supply.
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Why are people often attracted to a vocational profession?
It provides an opportunity to make a difference to people’s lives.
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How does vocation affect elasticity of supply for labour?
Supply may not change significantly in response to wage rates, meaning supply of labour is relatively inelastic.
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Other cards in this set

Card 2

Front

What is the supply of labour in a particular occupation influenced by?

Back

Monetary factors such as the wage rate, and non-monetary factors such as job satisfaction and working conditions.

Card 3

Front

What are 3 determinants of the supply of labour?

Back

Preview of the front of card 3

Card 4

Front

How do wage rates affect the supply of labour?

Back

Preview of the front of card 4

Card 5

Front

How does the size of the working population affect the supply of labour?

Back

Preview of the front of card 5
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