TAILIEUCHUNG - Lecture Labour market economics: Chapter 2 - Dwayne Benjamin, Morley Gunderson, Craig Riddell

Chapter 2 - Labour supply: individual attachment to the labour market. In this chapter, the following content will be discussed: Labour market attachment, labour force participation rate, labour supply, changes in market wage, overtime premiums. | Chapter Two Labour Supply: Individual Attachment to the Labour Market Created by: Erica Morrill, Fanshawe College © 2002 McGraw-Hill Ryerson Ltd. Chapter Focus Labour market attachment Labour Force Participation Rate Labour supply Changes in market wage Overtime premiums Chapter 2- © 2002 McGraw-Hill Ryerson Ltd. Labour Supply How individuals earn a living by selling labour services through the labour market. Question: Is labour supply an upward sloping function of the wage rate? Chapter 2- © 2002 McGraw-Hill Ryerson Ltd. Quantifying Labour Market Attachment Labour Force Participation the decision to participate in paid labour market activities influences the size and composition of our labour force impacts the economy Chapter 2- © 2002 McGraw-Hill Ryerson Ltd. Labour Force Participation Rate LFPR the fraction of the eligible population that participates in the labour force LFPR=LF/POP LF (Labour Force) individuals in the eligible population who participate in labour

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