LABOUR ECONOMICS Meaning and
Definition
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Labour economics is a branch of economics that studies the functioning and dynamics of the labor market. It focuses on the supply and demand for labor, the determination of wages and employment levels, and the effects of government policies, technological advancements, and other factors on the labor market.
The primary objective of labour economics is to understand and analyze the behavior of workers, firms, and governments in relation to labor-related issues. It examines how individuals make decisions regarding labor supply, considering factors such as education, skills, preferences, and labor market opportunities. On the other hand, it investigates the factors influencing labor demand by firms, including production costs, technological changes, and market conditions.
Labour economics analyzes various labor market outcomes, such as unemployment, wage inequality, and mobility. It also explores the role of labor unions in the labor market, examining their impact on wages, working conditions, and collective bargaining. Additionally, it investigates the role of government policies, such as minimum wage laws, social security programs, and labor market regulations, in shaping labor market outcomes.
Labor economists employ various quantitative and qualitative methods to analyze and interpret labor market data, including economic models, statistical techniques, and empirical studies. Their research findings and policy recommendations contribute to our understanding of labor market complexities and inform policymakers, businesses, and individuals in making informed decisions related to labor market participation, employment, and income distribution.
Etymology of LABOUR ECONOMICS
The word "labour economics" has its roots in Latin and Old French.
The term "labour" comes from the Latin word "labor", meaning physical or mental exertion, work, or toil. It entered English in the late 13th century and has remained relatively unchanged in spelling and meaning since then.
The word "economics" derived from the Greek word "oikonomia", which originated from "oikos" meaning "house" and "nomos" meaning "law" or "management". The term "economics" entered the English language in the 16th century through the Latin word "oeconomia", which referred to the management of a household or family. Over time, the meaning of economics broadened to encompass the study of production, consumption, and distribution of goods and services in a society.
