Edexcel Paper 3 Topic 3

Subject content

3.5.1 Demand for labour

a) Factors that influence the demand for labour

b) Demand for labour as a derived demand

3.5.2 Supply of labour

a) Factors that influence the supply of labour to a particular occupation

b) Market failure in labour markets: the geographical and occupational mobility and immobility of labour

3.5.3 Wage determination in competitive and non-competitive markets

a) Diagrammatic analysis of labour market equilibrium

b) Understanding of current labour market issues c) Government intervention in the labour market:

• maximum and minimum wages
• public sector wage setting
• policies to tackle labour market immobility

d) The significance of the elasticity of demand for labour and the elasticity of supply of labour