Labor Economics: Labor Supply

W QDL= f(W) We recap by recalling labour costs where when costs Go up, companies create a more mechanized form of labour Therefore, labour becomes more capital intensive. QDL C
∑ LD, W (the elasticity of labour demand with respect to wage = % change LD (demand for labour) % change in wage (w)
WHEN WE LOOK AT THE SUPPLY OF LABOUR = LS = g(w, # of earners, level of education)
Note: the increasing level of education increases the hour of work (LS)
Sidenote: explained about wealth – which is the accumulation of income which is not consumed vs income which is meant to consume. Labour Supply

Equilibrium Ls=Ld Labour Demand

Tool and Die makers for example are at a shortage, which means there is an excess demand, where the supply curve shifts to the left. How do we solve this? Though apprenticeships and grants and training in companies is one solution
However, Canada has solved this through immigration, a long term problem making the country more dependent on immigrant workers.
In terms of unionized workers, the demand tends to be more inelastic. Where the demand curve becomes more steep, equalling to a higher wage.
Labour Market Features
1st: more regulated than other markets Eg. Laws, labour legislation, company agreements between unions. Companies do not have complete ownership of workers but can have some control over their performance eg. Performance compensation
2nd: Wage rates are more sluggish in adjusting to imbalances. Implication: Imbalances in the labour market persist much longer.
3rd: Due to the higher diversity (more choices) there is a greater lack of information and uncertainty in terms of employees about their company and the company about their employees. Implication: Imbalances in labour markets are more frequent.
4th: Lower degree of mobility. Implication: imbalances in labour markets last longer. Occupational fragmentation meaning moving from one job to another, reduces mobility, also reducing fragmentation along