Chapter-18 Flashcards
Workers (16 cards)
What are earnings?
Earnings refer to the total pay received by a worker.
What is a wage rate?
A wage rate is the payment an employer contracts to pay a worker, typically the basic wage per unit of time or output.
What are the different types of wage payments that can influence a worker’s earnings?
i) Basic Wage: The standard wage a worker receives for their work, usually based on hours worked.
ii) Overtime Pay: Extra pay given to workers for working beyond the regular working hours, often at a higher rate.
iii) Bonuses: Additional payment for exceeding performance standards or completing tasks ahead of time.
iv) Commission: A percentage of the sales made, typically for workers in sales-related roles, sometimes alongside a standard wage.
What are some limiting factors that affect a person’s choice of occupation?
i) Qualifications: The education and certifications required for certain jobs.
ii) Skills: The specific abilities or expertise needed for a job.
iii) Experience: Previous work experience that can limit or expand job options.
iv) Location: Where a person lives may limit access to certain jobs.
v) Occupational mobility: The ability to move between different jobs or industries.
vi) Geographical mobility: The ability to relocate to different areas for job opportunities.
What is the National Minimum Wage (NMW)?
The National Minimum Wage (NMW) is the minimum hourly wage set by the government for workers.
What are some non-wage factors that influence a person’s choice of job?
i) Job satisfaction: Personal fulfillment from the work itself.
ii) Type of work: Preference for non-manual work and higher-status jobs.
iii) Working conditions: Pleasant environment, friendly colleagues, and regular breaks.
iv) Working hours: Flexibility in working hours and part-time options.
v) Holidays: Vacation time, including long breaks in certain occupations.
vi) Pensions: Retirement benefits offered by the employer.
vii) Fringe benefits: Extra perks such as meals or health schemes.
viii) Job security: Stability and long-term contracts in certain jobs.
ix) Career prospects: Opportunities for advancement and promotion.
x) Size of the firm: Larger firms often offer better pay and benefits.
xi) Location: Proximity to home to reduce travel time and expenses.
What is a wage differential?
A wage differential is the difference in wages.
Why do women tend to earn less than men?
i) They are often less well qualified, though this is changing with more women attending university.
ii) They are more heavily concentrated in low-paid occupations.
iii) They are less likely to belong to trade unions or professional organizations.
iv) They still face discrimination.
What factors can lead to an increased demand for labour?
i) Increased demand for the product: A higher demand for products leads to more workers being employed.
ii) Rise in labour productivity: Higher productivity increases the return from hiring workers.
iii) Increase in the price of capital: In some cases, labour can be substituted for capital in the production process.
What factors can cause a decrease in the supply of labour for a particular occupation?
i) A fall in the labour force: Fewer workers make it harder for businesses to recruit.
ii) An increase in qualifications or training required: Higher requirements reduce the number of eligible workers.
iii) A reduction in non-wage benefits: Less attractive working conditions lead to fewer willing workers.
iv) A rise in wage or non-wage benefits in other jobs: Workers may switch occupations if alternatives offer better benefits.
How can various factors affect wage rates?
i) Raising the national minimum wage: This increases the pay of low-paid workers.
ii) Improved education: While increasing supply, it may raise wages of skilled workers due to higher demand, boosting competitiveness and attracting multinational companies.
iii) Government immigration policies: Easier immigration increases the supply of labour, potentially holding down wage rises in certain sectors.
iv) Anti-discrimination laws: These improve career prospects and wages for disadvantaged groups, particularly women, by changing public attitudes.
v) Advances in technology: Technology can reduce wage rates by decreasing demand for certain workers, but can also increase wages in sectors like delivery services due to higher demand.
What are the elasticity of demand for labour and elasticity of supply of labour?
i) Elasticity of demand for labour: Measures how responsive the demand for labour is to a change in the wage rate.
ii) Elasticity of supply of labour: Measures how responsive the supply of labour is to a change in the wage rate.
What factors affect the elasticity of demand for labour?
i) Proportion of labour costs in total costs: Larger proportion equals more elastic demand.
ii) Ease of substituting labour with capital: Easier substitution equals more elastic demand.
iii) Elasticity of demand for the product: More elastic product demand equals more elastic labour demand.
iv) Time period: Longer period equals more elastic demand.
What factors affect the elasticity of supply of labour?
i) Qualifications and skills required: More qualifications = more inelastic supply.
ii) Length of training period: Longer training = more inelastic supply.
iii) Level of employment: Higher employment = more inelastic supply.
iv) Mobility of labour: Easier mobility = more elastic supply.
v) Degree of vocation: Strong attachment to job = more inelastic supply.
vi) Time period: Longer period = more elastic supply.
What is specialization?
Specialization is the concentration on particular tasks.
What is the division of labour?
The division of labour is when workers specialize in particular tasks.
