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Description
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Term
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That body which most trade unions are members of
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Trades Union Congress (TUC)
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That which if increased, may cause a substitution effect against labour as the opportunity cost of leisure would increase, encouraging people to work more hours ceteris paribus
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Wage Rate
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That type of wage, alternatives to which are the living wage, income tax reform, capital investment to increase productivity, and a work for welfare scheme
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Minimum Wage
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A process by which the public sector calls for private firms to bid for a contract to provide a service, the local authority then choosing the most competitive bid (and most efficiency) such as with health visitors
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Competitive Tendering
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That which determines the affect on total employment of trade unions successfully negotiating a higher wage rate
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Wage Elasticity of Demand for Labour
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A theory that the demand for labour depends upon balancing the marginal revenue product of labour against the marginal cost of labour
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Marginal Productivity Theory
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That type of market structure which might lead to competition rather than collusion where firms are of equal market share and especially where the market is not growing, allowing firms to expand only at another's expense
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Oligopoly
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The idea that the structure of a market in terms of the number of firms, determines how said firms conduct themselves, which in turn determines how well the market performs in achieving productive and allocative efficiency
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Structure-Conduct-Performance Paradigm
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Demand for a good or service not for its own sake, but for what it produces, e.g. labour is demanded for the output that it produces
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Derived Demand
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The extent to which demand for a product or service can be substituted for another if price is increased
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Demand Side-Substitutability
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That aspect of labour which is most affected by time (such as that taken to retrain, or in notice required to be given by an employment contract), and the ease with which the workforce can expand or contract such as due to unemployment, skills shortages, etc.
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Wage Elasticity of Supply for Labour
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That the aim of which is often to remove barriers to entry, thus potentially encouraging competition
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Deregulation
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The number of people willing and able to sell their factor of labour to employers
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Supply of Labour
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Where the regulator of an industry becomes so closely involved with said industry that it begins representing the industry's interests rather than regulating it, such as had been accused of financial regulators by their being staffed by many former bankers
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Regulatory Capture
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That aspect of labour which is most affected by the existence of substitutes such as capital goods, the proportion of a firm's costs absorbed by labour (low where mechanisation is high), and time, with capital goods being difficult to acquire and integrate in the short run
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Wage Elasticity of Demand for Labour
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They which may affect labour supply as if there are strict entry criteria for a profession such as law or medicine, the supply of labour will be restricted, forcing wages higher
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Barriers to Entry
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That which might be decreased by setting a minimum wage, as it may raise workers' purchasing power and thus demand for goods and services, incentivising increased production ceteris paribus
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Unemployment
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That the elasticity of which, increases a firm's wage elasticity of demand for labour
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Price
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The lowest wage at which an individual is willing to supply labour for a particular job
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Reservation Wage
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Those types of tax rates which need to be balanced as if they are too high for those on high incomes they may reduce incentives to work harder, while if they are too low for those on high incomes, they may cause extreme inequality and the problems associated with such
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Progressive Tax Rates
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