Theory question 106
Labour MarketSection B
(a) Explain the term mobility of labour
(b) Why may labour as a mobile factor of production be unwilling to move?
Show the model answer
(a) Mobility of labour is the ease with which labour moves from one place to another (geographical mobility) or from one job/occupation to another (occupational mobility), including from one grade to another (vertical mobility).
(b) Reasons for unwillingness to move:
1. Family and social ties.
2. Cost of moving and of housing in the new place.
3. Language, cultural and religious differences.
4. Lack of information about jobs elsewhere.
5. Long period and cost of training for a new occupation.
6. Age – older workers are less willing.
7. Insecurity, political instability, discrimination.
8. Climate and unfamiliar environment.
9. Love of present job, seniority and pension rights.
10. Trade union and professional restrictions.
Define both types of mobility.