Supply of labour

Supply of labour - The total number of hours of work that the population is willing to supply.

The supply of labour depends on various factors such as:
Wages
Qualifications required
Non monetary benefits / costs ...

The higher the rate of participation, the greater the supply of labour (a factor of production) available in a country.
Partnership ...

If the substitution effect is greater than the income effect, the supply of labour curve (diagram to the left) will slope upwards to the right, as it does at point E for example.

All these causes of differences of wages in different employments may be explained by showing the way in which they operate on the demand and supply of labour in the particular group.

Among the things that determine the supply of labour are the number of able people in the POPULATION, their willingness to work, labour laws and regulations, and the health of the economy and FIRMS.

The demand for labour by firms is downward sloping with respect to wage (price of labour), while the supply of labour by households is upward sloping with respect to wage.

See also: Labour, Equilibrium, Organisation, Elasticity, Elastic