Labour supply: Difference between revisions
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Two innovations in the theory of household behavior have broadened the analysis of labor supply in recent years. One is the conceptualization of labor supply as being linked to decisions about a variety of nonmarket activities such as pregnancy, education, and marriage. The second is to think of wage rates in the market and at home as choice variables that are influenced by the household members' search, job, and investment activities.<ref>{{Cite journal|last=Cain|first=Glen G.|last2=Dooley|first2=Martin D.|date=1976-08|title=Estimation of a Model of Labor Supply, Fertility, and Wages of Married Women|url=http://dx.doi.org/10.1086/260538|journal=Journal of Political Economy|volume=84|issue=4, Part 2|pages=S179–S199|doi=10.1086/260538|issn=0022-3808}}</ref> |
Two innovations in the theory of household behavior have broadened the analysis of labor supply in recent years. One is the conceptualization of labor supply as being linked to decisions about a variety of nonmarket activities such as pregnancy, education, and marriage. The second is to think of wage rates in the market and at home as choice variables that are influenced by the household members' search, job, and investment activities.<ref>{{Cite journal|last=Cain|first=Glen G.|last2=Dooley|first2=Martin D.|date=1976-08|title=Estimation of a Model of Labor Supply, Fertility, and Wages of Married Women|url=http://dx.doi.org/10.1086/260538|journal=Journal of Political Economy|volume=84|issue=4, Part 2|pages=S179–S199|doi=10.1086/260538|issn=0022-3808}}</ref> |
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The first birth control pill, Enovid was released in 1960, it changed the perspective of women towards work. Due to the contraceptive pill, women now had more hold over when they want to plan their child and what occupation or career goals they wanted to follow. It can also be said that, the pill have had long-term and far-reaching implications on women's labor market participation at all levels of education.<ref name=":0">{{Cite journal|last=Bailey|first=Martha J.|date=2006-02|title=More Power to the Pill: The Impact of Contraceptive Freedom on Women's Life Cycle Labor Supply*|url=http://dx.doi.org/10.1162/qjec.2006.121.1.289|journal=Quarterly Journal of Economics|volume=121|issue=1|pages=289–320|doi=10.1162/qjec.2006.121.1.289|issn=0033-5533}}</ref> There was lack of empirical research on impact of oral contraceptive. The pill's introduction in 1960 and subsequent widespread use coincided with the revival of the women's movement back in the day. Furthermore, abortion became more widely available about the same time as many young women obtained access to the pill, and it is possible that this had a similar impact on their fertility and employment options.<ref name=":0" /> |
The first birth control pill, Enovid was released in 1960, it changed the perspective of women towards work. Due to the contraceptive pill, women now had more hold over when they want to plan their child and what occupation or career goals they wanted to follow. It can also be said that, the pill have had long-term and far-reaching implications on women's labor market participation at all levels of education.<ref name=":0">{{Cite journal|last=Bailey|first=Martha J.|date=2006-02|title=More Power to the Pill: The Impact of Contraceptive Freedom on Women's Life Cycle Labor Supply*|url=http://dx.doi.org/10.1162/qjec.2006.121.1.289|journal=Quarterly Journal of Economics|volume=121|issue=1|pages=289–320|doi=10.1162/qjec.2006.121.1.289|issn=0033-5533}}</ref> There was lack of empirical research on impact of oral contraceptive. The pill's introduction in 1960 and subsequent widespread use coincided with the revival of the women's movement back in the day. Furthermore, abortion became more widely available about the same time as many young women obtained access to the pill, and it is possible that this had a similar impact on their fertility and employment options.<ref name=":0" /> According to Goldin and Katz, the wider access to the contraceptive pills brought in two major economic changes. First, it brought drastic changes in women's educational and career oriented choices. In earlier years, if a women wanted to follow her dreams, do higher education she had to delay her marriage and it came with certain costs. She would either have to pay penalty for sexual absenteeism, or take a chance that she won't be pregnant and that her investment in he career would not go wasted. This was called the direct effect from the pill. Second was the indirect effect according to Katz and Goldin. They coined this effect as social multiplier effect. This had an impact on all men and women. Because men also had now an opportunity to delay the marriage and not pay the huge penalty for it. Now, since everyone got the chance to delay their marriage, it created great pool of people or better chances of getting married to someone with the better match.<ref>{{Citation|last=Turner|first=Barry|title=National Bureau of Economic Research (NBER)|date=2012|url=http://dx.doi.org/10.1007/978-1-349-59541-9_150|work=The Statesman’s Yearbook|pages=77–77|place=London|publisher=Palgrave Macmillan UK|access-date=2021-11-22}}</ref> |
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==See also== |
==See also== |
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Revision as of 23:41, 22 November 2021
In mainstream economic theories, the labour supply is the total hours (adjusted for intensity of effort) that workers wish to work at a given real wage rate. It is frequently represented graphically by a labour supply curve, which shows hypothetical wage rates plotted vertically and the amount of labour that an individual or group of individuals is willing to supply at that wage rate plotted horizontally.
Neoclassical view
Labour supply curves derive from the 'labour-leisure' trade-off. More hours worked earn higher incomes, but necessitate a cut in the amount of leisure that workers enjoy. Consequently, there are two effects on the amount of labour supplied due to a change in the real wage rate. As, for example, the real wage rate rises, the opportunity cost of leisure increases. This tends to make workers supply more labour (the "substitution effect"). However, also as the real wage rate rises, workers earn a higher income for a given number of hours. If leisure is a normal good—the demand for it increases as income increases—this increase in income tends to make workers supply less labour so they can "spend" the higher income on leisure (the "income effect"). If the substitution effect is stronger than the income effect then the labour supply slopes upward. If, beyond a certain wage rate, the income effect is stronger than the substitution effect, then the labour supply curve bends backward. Individual labor supply curves can be aggregated to derive the total labour supply of an economy.[1]
Marxist view
From a Marxist perspective, a labour supply is a core requirement in a capitalist society. To avoid labour shortage and ensure a labour supply, a large portion of the population must not possess sources of self-provisioning, which would let them be independent—and they must instead, to survive, be compelled to sell their labour for a subsistence wage.[2][3] In the pre-industrial economies wage labour was generally undertaken only by those with little or no land of their own.[4]
Effects of contraceptive pills on women's labor supply
Two innovations in the theory of household behavior have broadened the analysis of labor supply in recent years. One is the conceptualization of labor supply as being linked to decisions about a variety of nonmarket activities such as pregnancy, education, and marriage. The second is to think of wage rates in the market and at home as choice variables that are influenced by the household members' search, job, and investment activities.[5]
The first birth control pill, Enovid was released in 1960, it changed the perspective of women towards work. Due to the contraceptive pill, women now had more hold over when they want to plan their child and what occupation or career goals they wanted to follow. It can also be said that, the pill have had long-term and far-reaching implications on women's labor market participation at all levels of education.[6] There was lack of empirical research on impact of oral contraceptive. The pill's introduction in 1960 and subsequent widespread use coincided with the revival of the women's movement back in the day. Furthermore, abortion became more widely available about the same time as many young women obtained access to the pill, and it is possible that this had a similar impact on their fertility and employment options.[6] According to Goldin and Katz, the wider access to the contraceptive pills brought in two major economic changes. First, it brought drastic changes in women's educational and career oriented choices. In earlier years, if a women wanted to follow her dreams, do higher education she had to delay her marriage and it came with certain costs. She would either have to pay penalty for sexual absenteeism, or take a chance that she won't be pregnant and that her investment in he career would not go wasted. This was called the direct effect from the pill. Second was the indirect effect according to Katz and Goldin. They coined this effect as social multiplier effect. This had an impact on all men and women. Because men also had now an opportunity to delay the marriage and not pay the huge penalty for it. Now, since everyone got the chance to delay their marriage, it created great pool of people or better chances of getting married to someone with the better match.[7]
See also
Scientific journals dealing with labour supply
- Journal of Labor Economics
- Review of Economics of the Household
- Journal of Human Resources
- Journal of Public Economics
References
- ^ Ehrenberg and Smith, "Modern Labor Economics", HarperCollins, 2008
- ^ Maurice Dobb (1947) Studies in the Development of Capitalism New York: International Publishers Co. Inc.
- ^ David Harvey (1989) The Condition of Postmodernity
- ^ Peter J. Bowden (1967) chapter Agricultural prices, farm profits, and rents, section "A. The long-term movement of agricultural prices" - "The long-term trend of prices". Published in The agrarian history of England and Wales, vol 4: 1500-1640, edited by Joan Thirsk. Also published in Chapters from the Agrarian History of England and Wales, 1500-1750, p. 18: "Wage-earning is not a pursuit that is normally engaged for its own sake, and in a peasant economy it is followed only by men with little or no land of their own."
- ^ Cain, Glen G.; Dooley, Martin D. (1976-08). "Estimation of a Model of Labor Supply, Fertility, and Wages of Married Women". Journal of Political Economy. 84 (4, Part 2): S179–S199. doi:10.1086/260538. ISSN 0022-3808.
{{cite journal}}: Check date values in:|date=(help) - ^ a b Bailey, Martha J. (2006-02). "More Power to the Pill: The Impact of Contraceptive Freedom on Women's Life Cycle Labor Supply*". Quarterly Journal of Economics. 121 (1): 289–320. doi:10.1162/qjec.2006.121.1.289. ISSN 0033-5533.
{{cite journal}}: Check date values in:|date=(help) - ^ Turner, Barry (2012), "National Bureau of Economic Research (NBER)", The Statesman’s Yearbook, London: Palgrave Macmillan UK, pp. 77–77, retrieved 2021-11-22
Further reading
- Arrighi, G. (1970). "Labour supplies in historical perspective: A study of the proletarianization of the African peasantry in Rhodesia". The Journal of Development Studies. 6 (3): 197–234. doi:10.1080/00220387008421322.
- Richard Blundell and Thomas MaCurdy, 2008. "Labour supply," The New Palgrave Dictionary of Economics, 2nd Edition Abstract.
- Ellen Meiksins Wood (2002) The Origins of Capitalism: A Longer View London: Verso
