8.3.1 Demand for labour as a derived demand
Definition: The demand for labour is a derived demand: firms do not want workers for their own sake, but for the goods and services they produce. Demand for labour depends on the demand for the final product.
Example: Rapid growth of online shopping in India has increased the demand for delivery riders and warehouse workers; a fall in demand for coal reduces the demand for miners.
🔒 Also in the full notes
- 8.3.2 Factors affecting demand for labour in a firm or an occupation
- 8.3.3 Causes of shifts in and movement along the demand curve for labour
- 8.3.4 Marginal revenue product (MRP) theory
- 8.3.5 Factors affecting the supply of labour to a firm or an occupation
- 8.3.6 Causes of shifts in and movement along the supply curve of labour
- 8.3.7 Wage determination in perfect markets
- 8.3.8 Wage determination in imperfect markets
- 8.3.9 Determination of wage differentials by labour market forces
- 8.3.10 Transfer earnings and economic rent
- Exam practice: 5 practice questions
- 4 exemplar 20-mark essays with full model answers, mark breakdowns and common mistakes
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