The labour market (OCR A-Level Economics): Flashcards
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Practise the cards
15 cards from this deck
Wage differentials
Wage differentials
Variations in wages across workers, industries, regions, or job roles due to various factors
Monopsony
Monopsony
Market with only one buyer
Trade union
Trade union
Organized association of workers protecting collective interests
Bilateral monopoly
Bilateral monopoly
Market with only one supplier and only one buyer
Effect of higher skills on wages
Effect of higher skills on wages
Higher wages due to increased productivity and scarcity
Effect of union presence on wages
Effect of union presence on wages
Higher wages due to collective bargaining power
Human capital theory
Human capital theory
Investment in education/skills leads to higher productivity and wages
Compensating wage differentials
Compensating wage differentials
Jobs with unpleasant conditions/higher risks pay more
Monopsony's effect on wages
Monopsony's effect on wages
Single employer sets wages lower than competitive markets
Collective bargaining
Collective bargaining
Trade unions negotiate with employers for better wages/conditions
Price in bilateral monopoly
Price in bilateral monopoly
Determined through negotiation between monopolist and monopsonist
Labour demand curve slope
Labour demand curve slope
Downward-sloping: lower wages lead firms to hire more workers
Labour supply curve slope
Labour supply curve slope
Upward-sloping: higher wages attract more individuals to work
Effect of increased labour demand
Effect of increased labour demand
Equilibrium wage rises and quantity of labour increases
Effect of increased labour supply
Effect of increased labour supply
Equilibrium wage falls and quantity of labour increases