4.1.6.2 (Influence on supply of labour to different markets)

• labour supply


  = the number of hours people are willing and able to supply at a given wage rate
• elasticity of labour 


  = measures the extent to which labour supply responds to a change in the wage rate in a given time period

  • lower skilled jobs = more elastic -> loads of substitutes and a consistent wage rate
  • higher skilled jobs = inelastic -> requires more training and special skills