8. Labour Markets - Labour Supply Shifts Flashcards
What do we call factors, separate from wages that may shift the labour supply curve?
Non-wage determinants of the labour supply curve
What are the 7 non-wage determinants of labour supply?
- Wages on offer in substitute professions2. Barriers to entry3. Non-monetary characteristics of the job4. Improvements in occupational mobility of labour5. Overtime6. Size of the working population7. Value of leisure time
How do wages in substitute professions affect the labour supply to an industry?
Higher wages in sub. profession - ppl move there - supply shifts to the left (& vice versa)
How do barriers to entry affect the labour supply to an industry?
The stricter barriers of entry to a profession are - e.g. required A levels - the lower supply will be - shift to left (& vice versa)
How do a jobs non-monetary characteristics affect labour supply to an industry?
The more non-monetary benefits a job has - good pension plan, healthcare etc - the more its supply curve will shift right (& vice versa)
How could improvements to the occupational mobility of labour affect the labour supply to an industry?
An increase in the ability of people to retrain and move between professions is likely to increase labour supply to an industry if its a desirable industry to be in (& vice versa)
How could overtime affect the labour supply to an industry?
The ability to be flexible with overtime to bring in some extra income if needed is appealing to workers - industries that offer this may have increased supply of workers (& vice versa)
How could the size of the working population affect labour supply to an industry?
The UK was part of The EU - ability for international workers to migrate to the UK - increase supply of labour to industries
How could the value of leisure time affect the supply of labour to an industry?
If leisure time = highly valued - supply of labour will fall (& vice versa)
