Business, Legal & Accounting Glossary
Labour economics studies economic principles, drivers, and trends in the labor market. This includes employment, unemployment, recessions, and depressions.
Labour economics is the branch of economics that seeks to understand the economic conduct of employees and employers with respect to varying profits, wages, working conditions, and prices. The subject of labour economics includes elements of politics, society, and economics.
Labour is a term used to measure the work done by humans. Labour economics can be analyzed by two different techniques: macroeconomic and microeconomic. Macroeconomic labour economics observes the interplay among money market, labour market, foreign trade market, and the goods market. This interplay produces tangible effects on gross domestic product, employment levels, aggregate income, and participation rates of a country. Microeconomic labour economics is engaged in observing and noting the role acted out by individual firms and individuals in the labor market.
An employee (or worker) is an individual who works full time or part-time as dictated by a contract of employment. Contract of employment can be written or orally expressed. This contract may also be implied. An employee acknowledges the duties and rights of employment.
Working condition or condition of employment is the physical environment where a person works. The term includes applicable space, lighting conditions, ventilation quality, and also the safety factor.
Wages are defined as the cost of utilizing labour in contrast to utilizing land or capital. It is the price of labor. Wages are vulnerable to the forces of supply and demand in labor market. The labour market, in turn, is affected by factors like the power of employers to replace labour with alternative factors of production like machines. Factors like productivity also influence the labor market.
Price is defined as the exchange value that enables an individual to buy a certain weight, quantity, or other measures of services or goods. It is the bedrock of any commercial transaction. Price can be fixed by a contract or negotiated in time between the parties. It is one of the business variables, which a company has control of.
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This glossary post was last updated: 28th March, 2020 | 0 Views.