Non-monetary considerations include job satisfaction, dissatisfaction and working conditions
People choose jobs for reasons beyond pay. Job satisfaction, job dissatisfaction, and working conditions all affect how many people want to work in a particular occupation.
Real World
NHS nurses consistently report high job satisfaction from patient care, yet poor working conditions — including mandatory overtime and understaffing — have driven record resignation rates since 2022, shifting labour supply to the left despite pay rises.
Exam Focus
When evaluating wage differentials, explicitly state that non-monetary factors explain why identical-skill workers accept lower pay in some sectors.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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