"Labour economics seeks to understand the functioning and dynamics of the markets for wage labour."
Study of the decision-making process of firms in terms of the quantity and quality of labor needed to produce goods and services for a profit.
Labor market equilibrium: The point where the supply and demand of labor are in balance, with an efficient allocation of resources.
Wage determination: The factors that influence the setting of wages, including productivity, labor market conditions, and institutional factors like labor unions.
Elasticity of labor demand: The responsiveness of employers to changes in the wage rate, which can be influenced by factors such as labor substitutes, production technology, and the level of competition in the market.
Marginal productivity theory: The idea that the value of a worker's contribution to production is equal to the value of the worker's marginal product, or the amount of additional output generated by adding one more worker.
Human capital theory: The concept that education, training, and experience are investments in a worker's productivity, which can increase their wage earning potential and labor market opportunities.
Labor market discrimination: The phenomenon where workers are treated differently based on characteristics like race or gender, leading to wage differentials and employment disparities.
Compensation strategies: The various forms of payment and incentives, such as piece-rate pay, paid time off, and bonuses, that employers use to motivate and retain workers.
Job search and matching: The process by which workers search for and find jobs that match their skills and preferences, and the matching process by which employers choose among a pool of potential candidates.
Labor market segmentation: The division of the labor market into distinct subgroups, such as by occupation or industry, which can have different labor market characteristics and outcomes.
Labor unions and collective bargaining: The organization of workers to collectively negotiate with employers over wages, benefits, and working conditions, which can affect labor market outcomes for union and non-union workers alike.
Derived Demand: This type of demand arises when the demand for labor is derived from the demand for goods and services that the labor is used to produce.
Seasonal Demand: This type of demand is influenced by seasonal fluctuations in demand for goods and services. Examples include holiday shopping and agriculture.
Cyclical Demand: This type of demand is influenced by the overall economic cycle, with demand for labor rising during economic expansion and contracting during economic downturns.
Short-Run Demand: This type of demand pertains to the short-term changes in labor demand due to changes in output prices or production technology.
Long-Run Demand: This type of demand pertains to the long-term changes in labor demand due to changes in input prices or production technology.
Elastic Demand: This type of demand changes significantly with changes in wages. Labor demand may decrease in response to higher wages, and increase in response to lower wages.
Inelastic Demand: This type of demand does not change significantly with changes in wages, indicating that labor demand is relatively stable.
Competitive Demand: This type of demand arises when firms compete for a limited pool of skilled labor.
Monopsonistic Demand: This type of demand arises when a firm is the only buyer of labor in an area or industry.
Structural Demand: This type of demand pertains to shifts in the economy from one industry to another, leading to changes in the types of jobs in demand.
"Labour economics looks at the suppliers of labour services (workers) and the demanders of labour services (employers)."
"Labour economics must also account for social, cultural and political variables."
"These patterns exist because each individual in the market is presumed to make rational choices based on the information that they know regarding wage, desire to provide labour, and desire for leisure."
"The rise of the internet has brought about a 'planetary labour market' in some sectors."
"Labour is conventionally contrasted with other factors of production, such as land and capital."
"Some theories focus on human capital or entrepreneurship, which refers to the skills that workers possess."
"Labour is a special type of good that cannot be separated from the owner (i.e. the work cannot be separated from the person who does it)."
"A labour market is also different from other markets in that workers are the suppliers and firms are the demanders."
"Labour is a commodity that is supplied by labourers, usually in exchange for a wage paid by demanding firms."
"Labour markets are normally geographically bounded."
"Labour economics must also account for social, cultural, and political variables."
"Each individual in the market is presumed to make rational choices based on the information that they know regarding wage, desire to provide labour, and desire for leisure."
"Labour economics seeks to understand the resulting pattern of wages, employment, and income."
"Some theories focus on human capital or entrepreneurship, (which refers to the skills that workers possess)."
"Labour is unique to study because it is a special type of good that cannot be separated from the owner."
"The rise of the internet has brought about a 'planetary labour market' in some sectors."
"Labour is supplied by labourers, usually in exchange for a wage paid by demanding firms."
"Labour economics looks at the suppliers of labour services (workers) and the demanders of labour services (employers)."
"Labour markets function through the interaction of workers and employers."