The Long-run Supply Curve of Labour
- In the long-run, there is time for people to change their occupation
- In this time period, the supply of labour to a given firm or occupation is influenced by the net advantages of the job
- These include both the pecuniary (financial) and non-pecuniary (non-financial) features of the job
Pecuniary Factors
- Wage rate
- The higher the wage rate, the more people are likely to want to do the job
- The opportunity to work overtime and bonuses
- People who are keen to raise their incomes by working extra hours, or people who are highly productive will be attracted to occupations that offer overtime work and bonuses.
Non-Pecuniary Factors
- These are the non-pecuniary advantages and disadvantages of jobs that impact on the supply of labour, and they are:
- The convenience and flexibility of hours
- Status
- Promotion chances
- Flexibility of location
- Qualifications and skills
- Highly skilled workforce required = less demand
- Job security
- More secure job = more demand
- Pleasantness of the job
- Holidays
- Perks and fringe benefits
- The quantity and quality of training
- Location
- Close location to a worker will increase demand
- The recent performance of the firm