26 terms in 4.1.6
Discrimination in the labour market
Wage discrimination means paying different groups different wages for the same work. Three conditions must all be presen
The labour market
Discrimination in the labour market
Discrimination based on gender or ethnicity can push down wages for affected groups. It can also reduce how many people
The labour market
Discrimination in the labour market
Even when workers are equally productive, wage discrimination — paying different groups different rates for the same wor
The labour market
Influences upon the supply of labour to different markets
People choose jobs based on more than just pay. Financial rewards (monetary factors) and non-financial rewards (non-mone
The labour market
Influences upon the supply of labour to different markets
People choose jobs for reasons beyond pay. Job satisfaction, job dissatisfaction, and working conditions all affect how
The labour market
Influences upon the supply of labour to different markets
The labour supply curve shows how many workers want a job as the wage rate changes. Higher wages attract more workers, s
The labour market
Influences upon the supply of labour to different markets
Several factors can increase or decrease the total number of workers available in an occupation at every wage rate. When
The labour market
Influences upon the supply of labour to different markets
Workers do not choose jobs based on pay alone — the number of people willing to work in a particular occupation is shape
The labour market
The demand for labour, marginal productivity theory
Firms hire workers only because customers want to buy what those workers produce. Labour demand depends entirely on prod
The labour market
The demand for labour, marginal productivity theory
Firms decide how many workers to hire by comparing what each extra worker earns for the firm against the wage they must
The labour market
The demand for labour, marginal productivity theory
The labour demand curve shows how many workers firms want to hire at each wage rate. When wages rise, firms hire fewer w
The labour market
The demand for labour, marginal productivity theory
Several factors can shift the entire labour demand curve left or right. These include changes in product demand, worker
The labour market
The demand for labour, marginal productivity theory
Elasticity of demand for labour measures how much the quantity of workers demanded changes when the wage rate changes. S
The labour market
The demand for labour, marginal productivity theory
Firms hire workers not for their own sake but because those workers help produce goods and services that customers want
The labour market
The determination of relative wage rates and levels of employment in imperfectly competitive labour markets
Real labour markets are not perfectly competitive. Monopsony power, trade unions, and imperfect information all distort
The labour market
The determination of relative wage rates and levels of employment in imperfectly competitive labour markets
A monopsony is a market with only one dominant employer. That employer uses its buying power to pay workers less and hir
The labour market
The determination of relative wage rates and levels of employment in imperfectly competitive labour markets
Real labour markets rarely match the perfectly competitive ideal — imperfections such as monopsony power (where a single
The labour market
The determination of relative wage rates and levels of employment in perfectly competitive labour markets
In a perfectly competitive labour market, wages and employment levels are set by labour supply and labour demand meeting
The labour market
The determination of relative wage rates and levels of employment in perfectly competitive labour markets
Market forces — the push and pull of labour supply and demand — set wage rates. Workers in high demand or short supply e
The labour market
The determination of relative wage rates and levels of employment in perfectly competitive labour markets
In a perfectly competitive labour market — one where no single employer or worker has the power to influence wages — pay
The labour market
The influence of trade unions in determining wages and levels of employment
Trade unions — groups that negotiate pay on behalf of workers — are more powerful in some situations than others. Severa
The labour market
The influence of trade unions in determining wages and levels of employment
A trade union sets a minimum wage for its members. In a competitive market this cuts jobs, but in a monopsony — where on
The labour market
The influence of trade unions in determining wages and levels of employment
Trade unions — organisations that represent workers and negotiate on their behalf through collective bargaining — can pu
The labour market
The National Minimum Wage
A national minimum wage sets a legal floor on pay, forcing wages above the market rate. This changes how many workers em
The labour market
The National Minimum Wage
A national minimum wage sets a legal floor on pay. It can raise living standards for low-paid workers, but it may also r
The labour market
The National Minimum Wage
A national minimum wage (NMW) is a legally enforced floor on the wage rate — the price paid per hour of work — set above
The labour market