Labour Market Economics (Quizlet Activity)

Here are twenty key terms all linked to aspects of the UK labour market that you can learn and then test using Quizlet.

Some key labour market terms to revise

• Derived demand: Demand for a factor of production as a result of demand for the final product that that factor of production can produce
• Discouraged workers: People out of work for a long time who may give up on job search and leave the labour market
• Dependency ratio: Ratio of dependents (people younger than 16 or older than 65) to the working-age population
• Discrimination: Different treatment of people based on age, gender, race, sexual orientation, ethnicity
• Economic rent: Any amount earned by someone above the minimum amount they require to work
• Full employment: When there enough unfilled job vacancies for all the unemployed to take paid work
• Gini coefficient: A measure of income inequality in a country, where 0 represents complete equality and 1 represents complete inequality.
• Human capital: The amount of skill, knowledge, talent, experience and ability of workers.
• Labour force: All people who are of working age, and able and willing to work. It includes both the employed, and the unemployed.
• Living wage: Hourly pay that provides enough money for a working person to live decently and provide for their family.
• Marginal revenue product: Extra revenue generated when an additional worker is employed.
• Money wages: Also known as "nominal wages"; the actual hourly rate of pay - it is not adjusted for inflation
• Monopsony employer: A labour market structure in which there is a single powerful buyer of a particular type of labour.
• Participation rate: Proportion of the population of working age that is in the labour force (either employed or unemployed).
• Poverty trap: Situation in which there is no incentive for workers earning a low income to earn extra income, because it would result in having to either pay higher tax and/or losing some of their benefit payments
• Real wage: The hourly rate of pay adjusted for inflation
• Transfer earnings: The minimum reward required to keep factors of production, such as labour, in its current occupation.
• Union density: Percentage of a particular labour force that belongs to a trade union
• Universal credit: Single monthly benefit designed to replace 6 separate benefits for people who are on low income or out of work.
• Wage elasticity of demand for labour: The responsiveness of the demand for labour to a change in the wage rate of labour. Calculated using the formula: %ΔDL ÷ %ΔW