Ask Experts Questions for FREE Help !
Ask
    Divine4's Avatar
    Divine4 Posts: 1, Reputation: 1
    New Member
     
    #1

    Dec 9, 2007, 09:38 PM
    Describe two factors that affect labor supply and two factors that affect labor deman
    Describe two factors that affect labor supply and two factors that affect labor demand. Using economic principles, describe how changes in the labor market have affected you or someone you know.
    Wondergirl's Avatar
    Wondergirl Posts: 39,129, Reputation: 5431
    Jobs & Parenting Expert
     
    #2

    Dec 9, 2007, 10:33 PM
    This sounds like a homework question.

    Think about it. What reasonable things affect the labor supply, i.e. the supply of people who work? What things prevent people from getting jobs or keeping their jobs? What causes layoffs?

    Then, think about the labor demand. What things affect what kind of jobs companies can offer? What things influence what jobs are available or not available? Or even disappear? For instance, the U.S. used to be a huge manufacturing country. Pittsburgh, Gary IN, and Chicago had big steel mills. Those steel mills are mostly gone now. Who is doing that kind of labor today to produce the steel the world needs? Why?

    The changes in the labor market have greatly affected us. Buy a cell phone or a DVD player or a iPod and call the technical service number if you are having problems with your new purchase. You will quickly find out about a few changes in the labor market!
    Akeemite's Avatar
    Akeemite Posts: 2, Reputation: 1
    New Member
     
    #3

    Jun 5, 2012, 12:09 PM
    1. Taxes lower the incentives to work which lower labor supply
    2. Welfare payement also lower the incentive to work lowering labor supply
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
     
    #4

    Jun 5, 2012, 11:02 PM
    Quote Originally Posted by Akeemite View Post
    1. Taxes lower the incentives to work which lower labor supply
    2. Welfare payement also lower the incentive to work lowering labor supply
    Sounds like a political answer

    Labour supply is affected by available skills, mobility, demographics, location and wage levels

    Labour demand is affected by job vacancies and economic activity
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
     
    #5

    Jun 6, 2012, 04:18 AM
    Although their effect might not be readily apparent or intuitively obvious, Akeemite's two factors are indeed among the many which influence labor supply.

    Assuming the first refers to a tax which is at least partially borne by labor (e.g. income, payroll), the effect is a reduction in the price received by labor in exchange for its services. Willing supply then falls below what otherwise would have been the equilibrium point.

    It's easier to see by noting that the cost of not working is measured by one's after-tax income. Lower AT income = lower cost of not working.

    Welfare payments also have a disincentive influence on supply. Generally, the opportunity cost of working is the sum of the value I place on my leisure time, plus any welfare amount I might receive for not working. Any increase in the latter, ceteris paribus, invokes an increase in my opp'y cost of working.

    Put another way, the benefit of working is the net spread of the paid wage over any welfare rate that might otherwise be obtained. An increase in the latter narrows the spread.

    The real question, though, is why are we 'laboring' over a 4 - year - old thread? :-)

    Cheers, all!
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
     
    #6

    Jun 6, 2012, 06:57 AM
    Because akeemite answered it yesterday so who bothers to check the date. It would be helpful if the original date was prominently displayed on the board or if threads expired after a certain time
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
     
    #7

    Jun 6, 2012, 09:30 AM
    Roger that... yeah, I was asking a bit tongue-in-cheek anyway. I saw that Akeemite had resurrected a rusty old thread, but figured that as long as somebody had pulled it out of the old toybox anyway, might be fun to kick it around a couple of times.

    Take care, comrade, and see you around the forum.
    Wondergirl's Avatar
    Wondergirl Posts: 39,129, Reputation: 5431
    Jobs & Parenting Expert
     
    #8

    Jun 6, 2012, 09:43 AM
    Closed

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search


Check out some similar questions!

Pre labor/False labor [ 4 Answers ]

Ok odd question. How long can pre labor last? I have been having contractions since Sunday and they don't get any closer and/or change in intesity. I was just wondering since even with two previous births I have never before experienced this. I don't even know if it is pre labor or not. I just...

What are the factors that affect your decision of utiltizing spot versus forward? [ 1 Answers ]

What are the factors that affect your decision of utilizing spot versus forward exchange rates?

Prime factors [ 1 Answers ]

How do I write 243 ina factor tree and then give the answer in index form :)

Physical factors [ 1 Answers ]

Why do we feel very warm when it's going to rain?

Risk factors [ 2 Answers ]

Hey, I would like to ask you, if you know what risk factors should be considred when dealing with retirement plans such as 401k in particularly


View more questions Search