Immobility of Labour
There are two kinds of immobility of labour
- Geographical immobility of labour is barriers to the movement of workers between different areas
- When this occurs, shortages of workers in one area and surpluses in others are not corrected, leading to regional unemployment and geographical wage differentials continue to exist.
- Geographical immobility occurs for a number of reasons, most notably are things like house prices or personal/family ties to the area.
- Occupational immobility is the barriers to workers changing occupations
- These obstacles can come in the form of the skills and qualifications required to do particular jobs
- These barriers contribution to occupational wage differentials and structural unemployment.