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