1 / 4

The Supply Of Labour

The Supply Of Labour . By the end of this unit you will be able to Explain the shape of the supply of labour curve Outline the determinates of the supply of labour curve Use the supply and demand model to illustrate the labour market . Supply of Labour .

callia
Download Presentation

The Supply Of Labour

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Supply Of Labour By the end of this unit you will be able to Explain the shape of the supply of labour curve Outline the determinates of the supply of labour curve Use the supply and demand model to illustrate the labour market

  2. Supply of Labour Labour is supplied by households or consumers in return for wages The supply of labour shows the number of workers who are willing to work at each given wage rate. SL An increase in wages brings about an increase in the quantity supplied for laboura movement along the curve. W ($/hr) W2 W1 Q2 YF YF = Full employment Q1 Q (hours)

  3. Shape of the supply curve The supply curve slopes upwards from the left to the right. This indicates that as wages rise, more workers are willing to make themselves available for work. Eventually once all available workers are employed (Yf) the additional increases in the wage rate cannot increase the quantity of labour supplied. Thus the curve becomes vertical.

  4. Shifts of the Labour Supply Curv e The other factors that affect the supply of labour are • Changes in the size of the population ( Net migration/ rate of natural increase) • Changes in the size of the labour force • School leaving age • Compulsory retirement age • Availability of welfare support • Age structure

More Related