Labour Economics
RELATIONSHIP BETWEEN DIVISIONS OF ECONOMICS AND LABOR ECONOMICS
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Abstract
Labor economics comprises the study of the factors affecting workers. Since all divisions of economics involve workers, it is prudent to evaluate their influence on labor economics and labor market for that matter. Consumption directly affects the supply of labor. If the workers experience an increase in their desire for consumption in relation to leisure, the labor supply curve will shift outwards. The workers will supply more labor at every given wage. The effect of public finance on labor economics may be through government taxation on the workers. If income taxes increase, workers will likely substitute leisure for consumption and supply less labor. Any effects on the supply and demand for labor will ultimately affect the labor market thus are essential in labor economics. Distribution of income may also affect the labor market especially if the distribution is unequal. Inequality in the distribution of income will affect workers and thus affect labor supply. Production of goods and services on the other hand determine the supply and demand for labor. Such effects directly influence the labor market.
Table of Contents
Introduction Study of labor economics involves the study of labor force as an element of production. Labor force mainly comprises all those who work for gain. These can be employees, employers, or those people who are self-employed. It may also include the unemployed who are seeking work. Labor economics therefore, studies the factors affecting efficiency of these workers, their deployment between different industries and determination of their pay. The various divisions of economics may have varying effects on labor economics. The five main divisions of economics include consumption, distribution, exchange, production and public finance. This paper
Insert name
Insert institution
Insert course
Insert date
Abstract
Labor economics comprises the study of the factors affecting workers. Since all divisions of economics involve workers, it is prudent to evaluate their influence on labor economics and labor market for that matter. Consumption directly affects the supply of labor. If the workers experience an increase in their desire for consumption in relation to leisure, the labor supply curve will shift outwards. The workers will supply more labor at every given wage. The effect of public finance on labor economics may be through government taxation on the workers. If income taxes increase, workers will likely substitute leisure for consumption and supply less labor. Any effects on the supply and demand for labor will ultimately affect the labor market thus are essential in labor economics. Distribution of income may also affect the labor market especially if the distribution is unequal. Inequality in the distribution of income will affect workers and thus affect labor supply. Production of goods and services on the other hand determine the supply and demand for labor. Such effects directly influence the labor market.
Table of Contents
Introduction Study of labor economics involves the study of labor force as an element of production. Labor force mainly comprises all those who work for gain. These can be employees, employers, or those people who are self-employed. It may also include the unemployed who are seeking work. Labor economics therefore, studies the factors affecting efficiency of these workers, their deployment between different industries and determination of their pay. The various divisions of economics may have varying effects on labor economics. The five main divisions of economics include consumption, distribution, exchange, production and public finance. This paper
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