Chapter 11: Labour market

Like any other market, the labour market has it's demand and supply.

• The demand for labour stands for all the firms an organizations willing to employ workers
• The supply of labour stands for all the people willing to supply themselves for a job.

In this market there is another factor: The willingness of individuals to work for a determined number of hours. This backward bending supply curve shows us the effect of working for longer periods of time in a worker. The point in the graph where the line stops advancing to the right will be the maximum hours per week willing to be supplied at a determined price. At a higher wage rate, less people will be willing to work. Curious but true, most of humanity is lazy!

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