Discuss the factors that influence the size of the Irish labour force. - Leaving Cert Economics - Question 8(a) - 2009
Question 8(a)
Discuss the factors that influence the size of the Irish labour force.
Worked Solution & Example Answer:Discuss the factors that influence the size of the Irish labour force. - Leaving Cert Economics - Question 8(a) - 2009
Step 1
Wage levels within the economy
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Answer
Higher wage levels in recent years act as an incentive for more workers to supply labour. When wages increase, individuals are more likely to seek employment and contribute to the labour force. However, it is important to note that recent wage restraint may have limited this effect.
Step 2
Structure of population/Size
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Answer
Ireland's population characteristics significantly impact its labour force size. An increase in the number of citizens within the working-age bracket directly enhances the labour force. For instance, Ireland has a smaller population than France, which limits the number of available workers.
Step 3
Participation Rate
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The willingness of individuals aged 16 to 65 to participate in the workforce has grown, which influences the overall size of the labour force. Many individuals who were once disengaged from work are now more inclined to seek employment or work part-time.
Step 4
Rates of income tax within the economy
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Changes in income tax rates can incentivize or disincentivize workforce participation. A recent reduction in income tax may encourage more people to enter the labour force, while higher tax burdens could hinder participation.
Step 5
Labour mobility
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Labour mobility in Ireland has increased, allowing workers to move more freely within the economy. This mobility is influenced by the EU's enlargement and fewer barriers preventing the movement of workers, thus expanding the potential labour force.
Step 6
Government Policies
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The government's measures regarding immigration directly affect the size of the labour force. Policies aimed at liberalizing entry requirements for workers in certain professions can enhance the labour supply by attracting skilled workers from abroad.
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