Labour Economics

Topics: Minimum wage, Unemployment, Employment Pages: 20 (5724 words) Published: September 28, 2012
Q2.Define “Labour Economics”. Explain the nature and scopeof Labour Economics. Explain the characteristics of Labour? Ans: -Labour Economics:-

“Labour Economics may be defined as a study of theorganization, institutions and behavior of the labour market in anindustrising or industrial economy”.

According to Dole Yoder:-
“Labour economics or manpower economics is primarilyconcerned with efficient utilization and conservation of manpower and resources. It studies and seeks to understand theprocesses by which manpower is applied and utilized in modernsociety. It is concerned of natural resources in the land”.

Scope of Labour Economics:-
Labour economics has to deal with may be stated as manpowerplanning, labour organization, labour relations and public policywage and employment theory, collective bargaining theory andpractice of social security and welfare etc.

According to Dr. G.P.Sinha, the following areas of study may belisted 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 efficiencycondition 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
V.Theory and practice of trade union management.

Nature of Labour Economics:-
Labour economics is in the process of development, its definitiontends to vary and change according to the nature of theeconomy and is supposed to indicate the criteria for delimitingits scope and enumerating and classifying the problems.I.The theoretical sectionII.The institutional section A.The Theoretical Section:-

 The theoretical section of labour economics is concerned withbuilding up of models of economic behavior by making differentsets of assumption. B.The Institutional Section:-
 The institutional section of labour economics is concerned withstudies of labour problems in an institutional historical content. The nature of the labour problems changes with the change inthe institutional framework of the economic systems.

Characteristics of Labour:-
According to Dr. Alfred Marshell, labour may be defined as “Anyexertion of mind or body undergone partly or wholly with a viewto have some good other than the pleasure derived directly fromthe work”. Characteristics are as follows:-

1.Labour cannot be separated from the person who labours-In other words we can say that labour cannot be separatedfrom labourer body and personality. Thus, the environmentand the working conditions in which the worker has to workare of utmost important in the supply of labour. 2.The worker sells his work services but he himself remainshis own property: - In the words of Marshell, “The workersells his work but he himself remains his own property. Thus, the supply of labour along with other things depends upon the forethought and selflessness of those who bringup the labourer. 3.Labour is perishable commodity, therefore it does not lastand cannot be stored for future- If a worker does not workfor a particular day, that day is lost for ever and he wouldnever be in a position to make use of his lost services. 4.As the seller of labour are commonly poor and have noreserve fund, therefore they cannot with held labour fromthe market. 5.The supply of labour cannot be decreased or increasedwith fall or rise of wage- Hence, a paid adjustment of thesupply of labour to its demand is not possible. 6.Labour is not mobile as capital: - The difference inenvironments, languages, customs etc at different placesis hinderences to the mobility of the worker from one placeto another. 7.The marginal productivity of...
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