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Modern Labour Economics

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Presentation on theme: "Modern Labour Economics"— Presentation transcript:

1 Modern Labour Economics
Chapter 6 Supply of Labour to the Economy: The Decision to Work

2 Table 6.1 – Labour Force Participation Rates of Females in Canada over 15 Years of Age, by Marital Status, (percent)

3 Table 6.2 – Labour Force Participation Rates for Males and Females in Canada by Age, (percent)

4 Table 6.3 – Labour Force Participation Rates of Women and Older Men, Selected Countries, 1965-2000

5 Table 6.4 – Part-time and Multiple Job Holding in Canada and the United States, 1985-1995 (percent)

6 Figure 6.1 – An Individual Labour Supply Curve Can Bend Backward

7 Figure 6.2 – Two Indifference Curves for the Same Person

8 Figure 6.3 – An Indifference Curve

9 Figure 6.4 – Indifference Curves for Two Different People

10 Figure 6.5 – Indifference Curves and Budget Constraints

11 Figure 6.6 – The Decision Not to Work is a “Corner Solution”

12 Figure 6.7 – Indifference Curves and Budget Constraint (with an increase in nonlabour income)

13 Figure 6.8 – Wage Increase with Substitution Effect Dominating

14 Figure 6.9 – Wage Increase with Income Effect Dominating

15 Figure 6.10 – Wage Increase with Substitution Effect Dominating: Isolating Income and Substitution Effects

16 Figure 6.11 – The Size of the Income Effect is Affected by the Initial Hours of Work

17 Figure 6.12 – Reservation Wage with Fixed Time Costs of Working

18 Figure 6.13 – Budget Constraint with a “Spike”

19 Figure 6.14 – Income and Substitution Effects for the Basic Welfare System

20 Figure 6.15 – The Basic Welfare System: A Person Not Choosing Welfare

21 Figure 6.16 – The Welfare System with a Work Requirement


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