Flashcards
Labour Market
Cards in this deck (13)
- 1Demand for LabourIt is a derived demand for goods and services it makes.
- 2Key Determinants of the demand for labour-Demand for the final product
-The wage rate
-Other labour cost
-Price of other factor inputs (machinery)
-Productivity of labour
-Government employment regulations -ease to hire workers - 3What determines the supply of labour?-The wage rate
-Other net advantages of work - e.g. job security and social trends
-Net migration
-Income tax
-Benefit reform
-Trade unions
-Government regulation - NMW - 4National Minimum WageRefers to the legal minimum hourly rate of pay an employer can pay its workers
- 5Diagram of the NMW and where is the unemploymentArrow represent unemployment
- 6Advantages of increasing NMW-A reduction in exploitation of labour and poverty
-A reduction in wage inequality between men and women
-A reduction in voluntary unemployment
-An increase in labour productivity
-To keep up with an increase in the cost of living due to inflation - 7Disadvantages of increasing the NMW- Increase in unemployment (rise in cost)
-An increase in inflationary pressure as firms pass on the extra wage cost
-Ineffective in reducing poverty
-An increase in red tape or bureaucracy - leads to higher costs and less flexibility
- May represent government failure - 8Frictional unemploymentChanging jobs and so register as out of work for a short period of time
- 9Structural unemploymentUnemployment due to a mismatch of skills and location between job seekers and job providers
- 10Geographically immobilityrefers to the obstacles which prevent labour moving from one area to another to find work.
Causes - financial cost, family and social ties, imperfect market knowledge - 11Occupational immobilityRefers to the obstacle which prevent labour from changing their type of occupation to find work.
Causes - insufficient education, training, skills and work experience - 12Government measures to increase geographical mobility-Relaxation of planning laws which enable construction firms to build
-Increasing construction of social housing
-Offering housing subsidies
-Improving operation of Job Centres so more information is available - 13Government measures to increase occupational mobility-Increasing the provision of training schemes
-Increasing the provision of further education (post -16)
-Increasing the provision of higher education
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- A-Level Economics (Microeconomics) Flashcards on Labour Market, created by Mary Doria on 11/01/2016.
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- Mary Doria
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