Labor supply

Labor supply is the amount of work people are willing and able to provide at different wages and working conditions. It reflects choices about paid work, leisure, and other uses of time.

Labor-leisure model: An economic model in which people choose how to divide time between paid work and leisure. It explains how wage changes alter the tradeoff between earnings and time away from work.
Labor force: People who are employed or unemployed but actively seeking work. Labor supply concerns the choices and capacity of people within this measured population.
Minimum wage: The legally mandated lowest wage employers may pay covered workers. Its effects depend partly on whether workers change participation or hours in response.
Labor demand: The amount of labor employers are willing and able to hire at different wages and conditions. It represents employers’ hiring choices, unlike workers’ willingness to provide labor.
Reservation wage: The lowest wage at which a person is willing to accept a particular job or offer of work. It helps determine whether a potential worker enters the labor market at all.
Labor force participation rate: The share of a population that is employed or actively seeking employment. It captures the extensive margin: whether people offer any labor.
Earned income tax credit: A United States tax credit that supplements earnings for eligible low- and moderate-income workers. Its changing subsidy across earnings levels creates different incentives to enter work and increase hours.
Labor market: The system through which workers and employers interact over jobs, wages, and working conditions. Labor supply meets employer demand within this broader system.
Income effect: A change in choices caused by the change in purchasing power that follows a price or income change. Higher wages can make workers wealthier and lead them to choose more leisure.
Employment-to-population ratio: The share of a population that is employed. It records realized employment rather than willingness to work at different conditions.

Linked from 12 pages