Question

example of determinants of supply of labour alternatives job

Answer 1

The determinants of supply of labour-

1. Higher wages induces more labor to work- the substitution effect induces more people to substitute leisure for labor when wages increase. Thus labor supply increases.

2. The wages and conditions of other jobs- If many jobs in a local area are considered unpleasant, then the supply of alternatives will be relatively higher.

3. Demographic changes and immigration- If immigration slows down, there can be vacancies in these particular jobs.

4. The non-wage benefits of a job - Unpleasant jobs will have fewer people willing to do them therefore supply will be relatively lower