• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Explain the main factors which might determine the elasticity of supply of labour to an occupation such as computer specialist (10)

Extracts from this document...

Introduction

Explain the main factors which might determine the elasticity of supply of labour to an occupation such as computer specialist (10) The elasticity of supply of labour measures how a change in wage rate will affect the amount of labour supplied to a given market in this case computer specialists, it shows how flexible a labour market is to enter and exit. Both elastic and inelastic labour markets are shown below. As you can see a inelastic labour market has a steeper supply of labour curve as it is not easy to enter the market usually due to the high skill levels needed and how long the investment in human capital will take before the economic agent can enter the market with the required skill, however an elastic labour market has a much less steep labour supply curve showing that the market is easier to enter and exit due to the lower levels of skill needed and is usually jobs such as waiting or shop assistants. ...read more.

Middle

and being "home taught" or taking shorter college based courses, however this still takes time which means the market is inelastic however it is becoming less inelastic as the population becomes more IT literate. The time taken to train in IT brings with it many opportunity costs and so can be very off putting to students, the average IT Specialist goes through compulsory education, a levels, a higher level degree and even sometimes courses after this, this means that in total it can take a student 6/7 years after compulasar7y education to become a IT specialist which means that a lot of people will prefer to enter the labour market and starting earning an income rather than spending the time investing in their human capital. This is true within all high skilled labour markets and so the more highly skilled the labour market is the more inelastic the supply of labour is. ...read more.

Conclusion

unemployed and looking for low skilled jobs making the lower skilled jobs even more elastic as these unskilled workers will not be able to move into markets such as specialised computing markets and so will move into lower skilled markets. The extent to which these factors affect the elasticity of demand for labour depends upon the government and its policies, the government are trying to combat inflexibility in the labour market by introducing schemes such as the new deal and training and educational councils which help low skilled workers become more highly skilled and reduce the inelasticity of certain labour markets, and as the main reason for inelastic labour markets is the skill level I believe that the market failure of unskilled workers will be best solved by the government policies of increased training and education be it Tec's or even at the lower levels of new vocational training in secondary schools. ?? ?? ?? ?? 3 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Here's what a star student thought of this essay

4 star(s)

Response to the question

This question responds to the question strongly, going beyond the analysis required by evaluating the extent to which factors determine elasticity of supply for labour. It was nice to see the concept applied to a real-life market - I was ...

Read full review

Response to the question

This question responds to the question strongly, going beyond the analysis required by evaluating the extent to which factors determine elasticity of supply for labour. It was nice to see the concept applied to a real-life market - I was pleased to see that rather than aimlessly explaining all the factors, they focused on the ones which would affect the computer scientist market most.

Level of analysis

The analysis in this essay is strong. When mentioning elasticities, a key word I always use is responsiveness. In this case, I would define elasticity of labour supply as "the responsiveness of the supply of labour to a change in the wage rate". It was nice to see clear diagrams showing the significance of the elasticity of supply in determining wages. The main determinants were well explained, such as qualifications required, training duration and the high-skilled nature of the job. If the essay wanted to explore elasticity further, they could've discussed transfer earnings and economic rent to ensure they reach the top marks. There is a small slip in the conclusion where they say elasticity of demand instead of supply. I would've liked to have seen the government intervention point explained further, as this is not a common point.

Quality of writing

This essay is structured well, having a clear introduction and conclusion. The conclusion, however, is poorly written and the one sentence is much too long. It is key to end on a strong note, with a justified judgement if evaluating, and poor grammar will only hinder its effectiveness. Technical terms are used well throughout.


Did you find this review helpful? Join our team of reviewers and help other students learn

Reviewed by groat 25/02/2012

Read less
Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Peer reviewed

    Explain the main features of the behaviour of firms which operate in an oligopolistic ...

    5 star(s)

    and at lower advertising costs firms will want to advertise on channels that they believe will reach their target market more efficiently and have low costs, this has affecting broadcasters such as itv and Channel 4 who have also had to lower advertising costs in order to keep abnormal profits.

  2. Economics - Classical School of Thought, Keynesian School of Thought, Supply Side School of ...

    Trillions of dollars worth of transactions are conducted daily and free market forces and open flow of information control it all. What is the Supply Side view? The basic idea to supply economics is that by reducing tax rate we can increase economic growth.

  1. Goodrich-RabobankInterest Rate Swap:

    * Invest in short term treasury bills, large CD's of commercial banks. * Floating rate notes of major US banks whose yields were tied to the Treasury bill notes. * Buy Goodrich floating rate notes with a yield tied to the LIBOR.

  2. Advantages and disadvantages of minimum wage.

    The major internal effects are a lessening in internal investment, hence, causing economic growth to slow down. The nation experiences negative external effects whereby the foreign direct investment decreases as investors are discouraged by increasing rate of inflation. Exports become uncompetitive in the international markets as high costs of domestic production affect their global competitiveness.

  1. Goverment spending. How and why the Government spends and how this might affect Tescos.

    Also, the paid workers might decide to purchase new clothes from next, thus increasing next's sales figures. This shows the multiplying effect in the business, money moving around in the economy. This would impact my business as it would bring more money and this will help the business make more of a profit.

  2. Macroeconomic Objectives and their impact on Business Activity

    Seasonal unemployment tends to take place in certain industries. Industries that suffer particularly are: * Hotel catering * Tourism * Santa Claus Classical or Real Wage Unemployment: Classical unemployment is the result of the real wage rate being maintained at an unrealistically high level.

  1. GCSE Economics Coursework

    road to the local corner shop, than to drive to the supermarket, as well as it is considered unnecessary to go to the supermarket for one or two items. Because of this, the newsagents can charge higher prices, increasing its profit margins because the demand will remain relatively unaffected.

  2. Discuss the policy options the Australian Government can use to achieve external stability

    Microeconomic reforms have promoted structural change in Public Trading Enterprises (PTEs), through corporatisation and privatisation of PTEs. Corporatisation aims to encourage PTEs to operate independently from government as if they are a private business enterprise. It involves eliminating external political and bureaucratic supervision.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work