Labour Market Theory
Demand for labour exists because businesses need workers to produce goods and services. What is this called?
Derived Demand
The percentage of people aged 15+ who are working or actively looking for work.
Participation rate
Awards and the minimum wage protect workers by creating this.
Safety net
Income after tax and government benefits.
Disposable income
The effect where higher rewards motivate people to work harder or gain skills.
Incentive effect
The wage rate where labour demand equals labour supply is called the what?
Equilibrium wage
The difference between people entering and leaving Australia.
Net migration
These set minimum wages and conditions for specific industries or occupations.
Modern awards
One of five equal income groups.
Quintile
Satisfaction or benefit gained from income.
Utility
When employers cannot find enough suitable workers, this is called a what?
Labour shortage
This may reduce labour supply as more people retire, but increase demand for healthcare workers.
Ageing population
Workplace-level negotiation between employers and employees.
Enterprise bargaining
Uneven sharing of income between individuals or groups.
Income inequality
Savings and investment used to build productive resources.
Capital formation
If workers produce more output per hour, what has increased?
Productivity
The education, skills and training of workers are called what?
Human capital
The test that ensures workers are better off under an enterprise agreement than the award.
Better Off Overall Test (BOOT)
Increasing income differences within the same occupation.
Wage dispersion
The ability to move between income or social groups.
Social Mobility
When skilled workers are scarce and firms strongly need them, workers gain stronger what?
Bargaining power
The ability of workers to move between jobs, industries or occupations.
Occupational mobility
An individual employment agreement often used outside the formal industrial relations system.
Before enterprise bargaining, wages were mainly set by awards and industrial tribunals under what system?
Centralised wage system
When people do not have the same chance to succeed due to education, wealth, networks or background.
Inequality of opportunity