When an individual dedicates their time and money to study a formal qualification, they invest in their long-term income in hopes that they will earn more than without a degree or diploma. On the other hand, some individuals may not value that time away from working and would rather earn wages short-term. Their skills, qualifications and characteristics would determine where they stand within the neoclassical theory. The neoclassical view is that remuneration is understood through the interaction of the demand for labour, and the supply of labour. The key concepts of the neoclassical school of thought include: Work and Leisure, Human Capital, Marginal Productivity Theory, Labour Demand and Supply, Elasticity, Flexible Wage Models (Ross, 2009: 13). The elasticity of labour demand measures the responsiveness of demand when there is a change in the wage rate. This is represented in the demand and supply curve.
Graph 1: Supply and Demand …show more content…
A position with few formal qualification requirements will be highly competitive but skilled labour is in demand as larger commercial construction projects, lasting up to 5 years, secure only a percentage of construction workers long-term work (Hunter Labour Hire, 2017). Therefore the implications of supply would be higher in a metropolitan hospitals where most construction workers would live towards the city, but the supply would be lower and the demand would be higher near rural hospitals.
The Fair Work Act (FWA) serves as a starting point to setting the minimum wage that is determined by the specific industrial instrument they are employed under; whether it be a Modern Award, Enterprise Agreement or National Minimum Wage order (Employsure, 2017) . The aim of the FWA is to reduce the amount of underpaid workers and ensure that workers are paid fairly in accordance to their
Graph 1: Supply and Demand …show more content…
A position with few formal qualification requirements will be highly competitive but skilled labour is in demand as larger commercial construction projects, lasting up to 5 years, secure only a percentage of construction workers long-term work (Hunter Labour Hire, 2017). Therefore the implications of supply would be higher in a metropolitan hospitals where most construction workers would live towards the city, but the supply would be lower and the demand would be higher near rural hospitals.
The Fair Work Act (FWA) serves as a starting point to setting the minimum wage that is determined by the specific industrial instrument they are employed under; whether it be a Modern Award, Enterprise Agreement or National Minimum Wage order (Employsure, 2017) . The aim of the FWA is to reduce the amount of underpaid workers and ensure that workers are paid fairly in accordance to their