supply for labour

• How is the supply of labour calculated?

  Number of workers times hours they can work
• What does the upward sloping supply curve indicate?

  Relationship between wage and number of workers
• How do demographics affect the supply of labour?

  More people willing to work increases supply
• What happens to the supply curve when demographics change positively?

  It shifts to the right
• How does migration affect the supply of labour?

  Migrants increase supply at all wage rates
• Why does migration particularly affect lower wage rates?

  Migrants often come from lower wage economies
• What non-monetary advantages can influence the supply of labour?

  Childcare affordability and promotion potential
• How does leisure time influence the supply of labour?

  Leisure is a substitute for work
• What factors influence a person's choice between work and leisure?

  Age, taxes, dependents, and income
• How can trade unions affect the supply of labour?

  They can attract or deter workers from the market
• What happens if taxes are too high and benefits too generous?

  People may withdraw from the labour market
• How does training affect the supply of labour?

  High training requirements may reduce supply
• What is the elasticity of the supply of labour?

  Responsiveness of labour supply to wage changes
• How do skilled jobs compare to unskilled jobs in terms of elasticity?

  Skilled jobs have lower elasticities than unskilled
• What effect does the length of training have on labour supply elasticity?

  Longer training leads to lower elasticity
• How does a sense of vocation affect labour supply elasticity?

  Jobs with non-financial rewards have inelastic supply
• How does the time period affect the elasticity of labour supply?

  Short run supply is more inelastic than long run
• What are transfer earnings in the context of labour supply?

  Minimum reward to keep labour in occupation
• What happens when supply is perfectly elastic?

  Wage equals transfer earnings
• What is economic rent in relation to labour supply?

  Income above transfer earnings
• What constitutes the equilibrium wage rate?

  Wage where demand equals supply
• What is the relationship between total factor earnings, transfer earnings, and economic rent?

  Total earnings equal transfer earnings plus economic rent