| What does it mean, the term, 'Individual Labour Supply' | -This refers to the Total Number of Hours one will work at a Given Wage Rate.
-In the Short Run, this determines the Supply of Labour. It depends on the Decision of people to Work or Not at the Given Wage Rate |
| Explain why the Supply Curve for Labour slopes Upwards | -Individuals are Prepared to work more hours when the Wage Rate Increases. There, however, are limits to how many hours someone will work, even if Wages keep Increasing.
-So Individual Workers will be limited to the amount of Labour they can Supply, but, the Higher Wages will incentivise more Workers to the Job/Occupation. This Increases the Labour Supply
-This means the Curve slopes upwards. |
| What is the Supply Curve influenced by in the Long Run? | -It all depends on Pecuniary (Monetary) and Non-Pecuniary (Non-Monetary) Factors.
-It is These Factors that determines the overall Net Advantage of working at a Place or Not |
| What are Pecuniary Benefits? | -This is the Welfare that Workers gain from the Wage they Get, or what is Bought with it. |
| What are Non-Pecuniary Benefits? Why can they be quite Important for Firms? | -This is the Welfare that Workers gain from the Non-Wage Benefits of a Job. This can be of the following:
-Flexible Working Hours
-Employee Discounts
-Generous Holiday Allowance
-Good Job Location - Home Working?
-Training Available
-Opportunities for Promotion
-Job Security
-Perks of the Job - Company Car
-Non-Pecuniary Benefits allow more Workers to Supply more Labour at the Given Wage Rate. So they Shift the Curve to the Right |
| If the Non-Pecuniary Benefits are
1. Low
2. High
What would happen to Pecuniary Benefits? | 1. If the Job reaps little Job satisfaction, because of Tedious or Repetitive Stress, then Workers will want a Higher Wage for Compensation for the Low Satisfaction they Gain. Otherwise, they'll possibly Leave
2. If the Job reaps Tons of Job Satisfaction, then Workers will take a Lower Wage Rate because of the Perks / Non-Monetary Benefits they gain |
| Apart from Job Satisfaction, how else could the Supply of Labour be affected by? | -Size of the Working Population in a given Country as a whole. An Aging Population which has a Large % of Retirement may provide not enough Workers to meet the Firm's Demand
-Competitiveness of Wages: Workers may pick jobs that offer the Highest Wage. This makes Firms who pay Low Wages fare Poorly
-Publicising of Job Opportunities: Can be Hard to attract Workers to a Job/Industry if not properly Advertised rightly. Information Failure? |
| Why can Low Skilled Jobs greatly Affect the Elasticity of Labour Supplied | -Low-skilled jobs result in the Supply of Labour being more Elastic. A Small Rise in the Wage Rates creates a Bigger % in the Quantity of Workers Supplied. This can be due to a Large Pool of Unskilled Workers, and More being Unemployed and Looking for Work
-Furthermore, low-skilled jobs usually have similar wage Rates. If one Low Skilled Job increases its wages by a Small Amount, it leads to a greater Force of Workers moving into the Firm |
| Why can Skilled Jobs greatly Affect the Elasticity of Labour Supplied? | -The Supply Curve for Doctors, Bankers and Pilots are more Inelastic - Definitely in the Short Run
-If there was a Shortage in Doctors in Britain, Raising the Wage will not be Enough to Raise Supply in the Short Term as it takes Years for a Trained Suitable Doctor. Increasing the Wage Rate would be more Effective in the Long Run |
| Why can the Mobility of Labour affect the Elasticity of Labour Supply? | -If workers arew Occupationally Mobile - they can Move from one Job to another - then a Rise in the Wage leads to a greater % in Supply of Labour
-If Workers are Geographically Mobile - they can move Locations to where the Jobs are - then Wage Rises leads to more Labour Elasticity for Supply |
| How can Net Migration boost the Supply of Labour? | -Net Migration (More People entering a Nation than leaving it) can Boost the Supply of Labour and deal with Shortages of Skilled Workers and Seasonal Workers as well, in Agriculture and Construction |
