3.5 - Elasticity of Supply for Labour Flashcards
What is elasticity of supply of labour?
Responsiveness of quantity supplied to change in the wage rate
How is ELS calculated?
% Change QS/% Change WR
What affects elasticity of supply of labour?
Qualifications + skills
Mobility
Training
Time
How does qualification affect elasticity of labour supply?
Skilled/qualified workers more inelastic
Reduces labour pool
Specific requirements are inelastic
How does mobility affect elasticity of labour supply?
Mobile supply - Elastic
Easier to supply/replace supply
How does training affect elasticity of labour supply?
Length + costs
More training => Inelastic
Not expendable
How does time affect elasticity of labour supply?
More time, elasticity increases
Takes time to respond to changes in relative wages/earnings
What can time based factors be altered by?
Mobility
Mobile supply generally elastic in the short + long run
Why is low skilled labour more elastic?
Consistently available pool of labour at fairly constant wage rate
