4 ms·
> You're describing demand for labour. > Labour supply is the amount of workers willing to work at a given wage. Demand for labour is the amount of workers wan
by vageli 8y ago
> You're describing demand for labour.
> Labour supply is the amount of workers willing to work at a given wage. Demand for labour is the amount of workers wanted at a certain wage. If someone's excluded from the market at a certain wage, it means there isn't demand for their labour at that price.
If the person is excluded from the market, how does that show lack of demand for their labour at a certain wage? The person isn't even a market participant at that point.
- Mikeb85 8y agoThe very word excluded implies that the person excluded wants to be included, otherwise we'd simply say they're outside the labour force or non-participants.
- gizmo686 8y agoIf someone is willing to work for $5, they will be willing to work for $15 [0]. The fact that they don't work is at all when the wage floor is $15 is because no one is willing to hire them at that price. Hence, it is a demand side issue. The supply/demand curve here is a bit tricky, becauce, given a minimum wage of $15, the demand for labor at $14.99 is actually less than the demand for labor at $15, because employers are generally not willing to break the law over $0.01/hr