Supply of labour

Extract E (lines 19–20) states that ‘Some out-of-work benefits have not kept up with inflation, putting downward pressure on wages, contributing to the rise in in-work poverty.’

With the help of a diagram, explain how a reduction in out-of-work benefits may lead to lower wages in some labour markets.

Explain the determinants of the supply of labour to an industry.

Figure 6 shows the supply of labour (S_L) and demand for labour (D_L) in a perfectly competitive labour market.

All other things being equal, which one of the following combinations would mean that wages in this labour market are likely to increase from W₁?

Explain how the data in Extract A (Figure 2) show that the incentive for workers to become self-employed increased between 2009/10 and 2018/19.

Figure 9 shows two labour supply (S₁ and S₂) curves for workers qualified to the level necessary to be employed in a particular industry.

All other things being equal, the shift of the supply of labour curve from S₁ to S₂ is most likely to be explained by a reduction in