Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
3 Cards in this Set
- Front
- Back
|
What are the causes of labour market failure ?
|
-Abuse of labour market power.
-Imperfect information -skill shortages -economic inactivity -unemployment -discrimination -segmented labour markets -geographical and occupational immobility of labour. |
|
|
what is labour market failure ?
|
-Labour market failure occurs when the market forces of supply and demand do not result in an efficient allocation of labour resources.
-Evidence of labour market failure are; -Surpluses in some forms of labour and shortage of others. -workers being in jobs they are not best suited to. -A lack of training. -wage rates being above or bellow the equilibrium rate. |
|
|
How does the abuse of labour market power lead to labour market failure ? |
-TU have different degrees of market power. -They may push the wage rate above the equilibrium causing unemployment. |
