The labour market
The factors of production
Land
Labour
Capital
Enterprise
Anything provided by nature to produce goods/services e.g timber, gas pay = rent
physical effort used to provide G&S pay = wage
Anything human made to produce G&S e.g machinery pay = rent
entrepreneur who takes risks to take a profit by combining other three
pay = profit/loss
Labour
Factor market: firms acquire the FOPs needed to provide goods and services
G&S market: where consumers demand the G&S for consumption
Economic rent: return on any FOP in excess of its supply price
Enterprise
Gov role
Capital
Capital deepening: increase in labour and capital result in the ratio of capital to labour
Capital widening: the increase in labour and capital leaves the ratio of labour to capital unchanged
MEC: the extra revenue generated by the extra unit of capital minus the cost of capital
Nominal wage: the rate of pay or salary of an employee
Real wage: the purchasing power of the wages
MPP: extra output generated from as a result of employing an extra unit of labour
MRP: the extra revenue generated as a result of employing an extra unit of labour
Grants
Loans,
Improve infrastructure,
Credit review office,
Education provision,
Change output/ change labour
Change in revenue/ change in labour
MRP= MPPx MR
LDMR: increasing units of variable FOP combined with fixed amount of another FOP, the extra output generated by extra units of variable FOP start to diminish
SQAMP:
Skills,
quality of capital,
Ability of manager,
morale,
price
harder for services to measure outcome e.g nurses
when labour is used with capita
supply curve
FEDTS:
FDI
Employers PRSI
Demand for firms output
State subsidies
Movement: size of population,
participation rate,
mobility of labour
OccupationalMOL
Qualifications, restrictions
GeographicalMOL
Age
family
price of property
availability of info,
visas
incentives
Wage drift: wage levels rise above negotiated levels
full employment problems
lower quality employees
reduction in quality of service
have to pay higher wages
Cost-push inflation: rise in wage rates due to labour shortages causes higher prices for consumerse
Labour shortages
Increase visas,
increase minimum wage,
Reduce direct taxes,
incentivise individuals,
accommodation cheaper,
social infrastructure
minimum wage: lowest wage per hour that a worker must be paid
Better standard of living,
Worker exploitation illegal,
Increased consumer spending,
Increased government tax revenue
Employers hire fewer staff,
reduced hours,
Less competitive Irish exports,
increased cost of labour for non minimum wage workers
Gig economy: Independent workers,
short-term/payment by task
Different wages based on:
Nature of Job,
skills,
responsibility,
Experience,
Trade union,
productivity,
innate talent
Gender pay gap
Difference between what is earned by the average man and the average woman
Over-representation of women in low-paying jobs/ men in higher paying jobs,
Glass ceiling
more likely to take career breaks and job share,
high cost of childcare forces parents to give up job,
part time work
Gender quotas,
family friendly,
pay gap reporting,
MRP: Extra revenue generated as a result of employing an extra unit of labour