Theory question 107
Labour Market(a) Distinguish between labour and labour force.
(b) State four reasons for the differences in earnings among workers.
Show the model answer
(a) Labour is the human effort, physical and mental, used in production in return for a reward; labour force (working population) is the number of people of working age who are willing and able to work, whether employed or seeking work.
(b) Any four: differences in skill, education and training; nature of the job (risk, unpleasantness); demand and supply of each type of labour; trade union strength; government policy (minimum wage); differences in productivity; experience and length of service; discrimination by sex, location or race; prestige of the job.
Labour is the factor of production; labour force is the group of people available to work.