The supply of labour

1. The supply of labour Influences upon the supply of labour, wage elasticity of supply for labour

2. The supply of labour to a particular industry is influenced by monetary and non-monetary factors.

3. The wage elasticity of supply of labour • Measures the responsiveness of the quantity of labour supplied to a change in the real wage rate. It is measured thus:- WESL = percentage change in quantity of labour supplied percentage change in the real wage rate

4. The Wage Elasticity of Supply for Labour Inelastic WESL Elastic WESL Following a rise in the Living Wage of 3%, the supply of workers to this occupation rose by 5%. Calculate the WEDL Interpretation • Following a rise in the starting salary of computing graduates of 3%, the supply of graduates to this profession rose by 1%. • Calculate the WEDL • Interpretation

5. An elastic response(workers can rapidly enter or leave the industry following a change in wage rates) The following provide for an elastic response • Few skills and qualifications are needed for the job. • The job requires little training . • The job lacks a vocational element . • The time taken to leave and enter the industry isshort Real Wages Supply of labour Quantity of labour

6. An inelastic response(takes time for workers to enter or leave the industry following a change in wage rates) The following provide for an inelastic response • Skills and qualifications are needed for the job. • The job requires training . • The job has considerable vocational element . • The time taken to leave and enter the industry is lengthy. Real Wages Supply of labour Quantity of labour