Influences upon the supply of labour to different markets

The supply of labour to a particular industry is influenced by monetary and non-monetary factors.

The supply of labour Generally the higher the wages rate, the greater the number of people who will want to work in that sector. Real Wages S W1 QD1 Quantity of labour

Shifting the supply of labour curve Improvements in non-monetary factors Seeking a material increase in the standard of living Falling incomes (?) An increase in population An Aging population Real Wages S W1 QD1 QD2 Quantity of labour

Non-monetary factors Where the following non-monetary factors exist, to workers are more likely to offer their labour that firm or industry. Convenience and flexibility Status Promotion Job security Working conditions Holiday/leisure time Perks and fringe benefits Job satisfaction

The backward bending supply curve The backward bending supply curve suggests that after securing a wage that provides for a certain standard of living, hours worked may decrease. Real Wages S B W2 A W1 QS QS Hours worked per year