Labour Economics

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Q2. Define “Labour Economics”. Explain the nature and scope of Labour Economics. Explain the characteristics of Labour? Labour Economics:-

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“Labour Economics may be defined as a study of the organization, institutions and behavior of the labour market in an industrising or industrial economy”. According to Dole Yoder:“Labour economics or manpower economics is primarily concerned with efficient utilization and conservation of manpower and resources. It studies and seeks to understand the processes by which manpower is applied and utilized in modern society. It is concerned of natural resources in the land”. Scope of Labour Economics:Labour economics has to deal with may be stated as manpower planning, labour organization, labour relations and public policy wage and employment theory, collective bargaining theory and practice of social security and welfare etc. According to Dr. G.P.Sinha, the following areas of study may be listed to fall under the preview of labour economics:I. Institutional framework of the particular economic system. II. Size and composition of the labour force and labour market. III. Labour as a factor of production- productivity and efficiency condition of work-industrial relation standard of living IV. Labour’s risk and problems. V. Trade unionism VI. Labour’s status and position in society VII. Labour legislation. Another different area of labour economics are:I. Advance theory of labour economics II. Labour laws III. Principles of personnel management and job evaluation IV. Principle and practice of labour welfare

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V. Theory and practice of trade union management. Nature of Labour Economics:Labour economics is in the process of development, its definition tends to vary and change according to the nature of the economy and is supposed to indicate the criteria for delimiting its scope and enumerating and classifying the problems. I. The theoretical section II. The institutional section A. The Theoretical Section:The theoretical section of labour economics is concerned with building up of models of economic behavior by making different sets of assumption. B. The Institutional Section:The institutional section of labour economics is concerned with studies of labour problems in an institutional historical content. The nature of the labour problems changes with the change in the institutional framework of the economic systems. Characteristics of Labour:According to Dr. Alfred Marshell, labour may be defined as “Any exertion of mind or body undergone partly or wholly with a view to have some good other than the pleasure derived directly from the work”. Characteristics are as follows:1. Labour cannot be separated from the person who laboursIn other words we can say that labour cannot be separated from labourer body and personality. Thus, the environment and the working conditions in which the worker has to work are of utmost important in the supply of labour. 2. The worker sells his work services but he himself remains his own property: - In the words of Marshell, “The worker sells his work but he himself remains his own property. Thus, the supply of labour along with other things depends LABOUR ECONOMICS(Page 2) Name : (PL. FILL IN), Enrolment No.( PL. FILL IN)

upon the forethought and selflessness of those who bring up the labourer. 3. Labour is perishable commodity, therefore it does not last and cannot be stored for future- If a worker does not work for a particular day, that day is lost for ever and he would never be in a position to make use of his lost services. 4. As the seller of labour are commonly poor and have no reserve fund, therefore they cannot with held labour from the market. 5. The supply of labour cannot be decreased or increased with fall or rise of wage- Hence, a paid adjustment of the supply of labour to its demand is not possible. 6. Labour is not mobile as capital: - The...
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