THE SUPPLY OF LABOUR

First, we will talk about ‘’ What is ‘The supply of labour’ means ’’, its
understood as the amount of labour that employees are able and
wiliing to rent to enterprises at different wage for a given period of
time.

a)The Trade-off between Work and Leisure

- Maybe no trade-off is more important or clearly in a person’s life
than the trade-off between work and leisure
The more time we spend working, the lesss time we can go out
or play with your friends or do your hobby.
The trade-off between work and leisure lies behind the labor-
supply curve.
- If you give up an hour of work, you will lose your 1 hour of your
wages
Example : your wage is 10$ per hour, the opportunity cost of a
hour leisure is 10$
If your wage raise to 25$ or even higher, the opportunity cost
of enjoying leisure goes up
- The labour supply curve shows hows worker’s decisions about the
trade-off between work and leisure
+ The time is limited, more hour of work mean workers enjoy less
leisure. So that they respond to the increase in the opportunity
cost of leisure by taking less of it
- The labour-supply curve is need not to be upward sloping. Thus
we got that raise from 10$ to 20$ per hour, the opportunity cost
of leisure maybe now better than before, alsso we can become
rich man. Standing at the high wages, we can choose to work
fewer hours -> the labour-supply curve will slop backward
b) What Causes the Labor-Supply Curve to Shift?
The labour-supply curve could change whenever people change
the amount they want to work at their certain wage
- Chang in taste:
+ From 1950 to 2009, the percentage of women were employed
at paid jobs had risen from 34% to 59%. This is supríningly that
people has change their attitudes towards work.
+ A generation of two ago, people belived that woman should stay
at home do the houshold choirse and take care the baby. But
today, family sizes are smaller, more woman choose to work than
just staying at home
This make the labour-supply curve increase
- Changes in Alternative Opportunities:
+ The supply of labour in any labour market denpends on the
opportunities available in other labour markets
Example: If the wage earned by sale kid toys sunddenly rises, the
people who sale teddy bear may choose to switch occupations,
and the supply of labour in market for sale teddy bear will fallls.
- Immigration
+ Human migration from region to region is an important source
of shifts in labour supply
Example: When immigrants come to Viet Nam, the supply of
labour in Viet Nam will increases, so the supply in immigrants’s
region will go down
- There are much of the policy debate about immigration and the
affection of it was effect on the labour supply
Equilibrium wages in the labour market.