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1ACEEconomicsLecture4:CasestudyofAustralianlabourmarketTrinityCollegeFoundationStudies
mendedTextsRichardMorris.,‘EconomicsDownUnder’,VCEEconomics,Units1and2,9thEdition,Jacaranda.Chapter5,pages187-196AustraliaBureauofStatistics,Labourforcestatistics,6202.0,April2016.
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Video-RevisionsupplyanddemandIndianaJones:3
LectureOutlineBuyersandsellersintheAustralianlabourmarketWagedeterminationintheAustralianlabourmarketNatureoftheAustralianlabourmarketAustraliaBureauofStatistics’surveyoftheAustralianLabourmarket4
BuyersandsellersintheAustralianlabourmarketThelabourmarketiswherebuyersandsellersoflabournegotiate.Australia’slabourmarketisaninstitutionwherelabourresources(thephysicalpowerandmentaltalentsofworkers)areboughtandsoldataparticularpriceorwage.Thesellersorsuppliersoflabour(S)comefromthehouseholdsectorandconsistofthose12millionorsoAustraliansagedover15yearswhoareableandwillingtowork(membersofthelabourforce).Thebuyersordemandersoflabour(D)arefirmswantingstafftofilltheirjobpositions.5
BuyersandsellersintheAustralianlabourmarketLabourmarkets,likeothermarketsaregovernedbytheforcesofsupplyanddemand.However,labourmarketsaredifferentfromothermarketsbecauselabourdemandisaderiveddemand.Labourservicesareinputsintotheproductionofgoodsandservices.Assumethatforthecompetitivefirmitisapricetakerinthelabourmarket.Itmusttakethewageitpaysforlabourasgivenbymarketconditions.6
BuyersandsellersintheAustralianlabourmarketThepriceoflabouristhewagerate.Inacompetitivemarket,theequilibriumwagerateandtheequilibriumquantityoflabourisdeterminedbythedemandforandthesupplyoflabour.WecanrepresentthelabourmarketasasupplyanddemanddiagramThedemandcurveforlabourisdownward-slopingasemployerswouldwanttoemp
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