(a) Define mobility of labour. (b) Describe any four factors influencing the supply of labour.

Answer Details

(a) Mobility of labour is the ease with which workers can move from one job, occupation or geographical location to another. It has two forms: geographical mobility (movement from one place or region to another to work) and occupational mobility (movement from one occupation or grade of job to another).

(b) Four factors influencing the supply of labour:

• Size of the population: A larger population, other things being equal, provides a larger pool from which the labour force is drawn.
• Age structure of the population: The proportion of people within the working age bracket determines how many are available to work; a young or ageing population reduces the working population.
• Wage rate: Higher wages generally attract more people into the labour market and encourage longer hours, increasing supply (up to the point of a backward-bending supply).
• Hours of work, working conditions and level of education/training: The number of hours per worker, attractiveness of conditions, and the skills available determine the effective quantity and quality of labour supplied. (Social factors such as the participation of women and cultural attitudes to work also count.)