LABOUR ECONOMICS

Labour Economics:Labour Economics may be defined as a study of the

organization, institutions and behavior of the labour market in an
industrising or industrial economy.
According to Dole Yoder:Labour economics or manpower economics is primarily
concerned with efficient utilization and conservation of
manpower and resources. It studies and seeks to understand the
processes by which manpower is applied and utilized in modern
society. It is concerned of natural resources in the land.
Scope of Labour Economics:Labour economics has to deal with may be stated as manpower
planning, labour organization, labour relations and public policy
wage and employment theory, collective bargaining theory and
practice of social security and welfare etc.
According to Dr. G.P.Sinha, the following areas of study may be
listed to fall under the preview of labour economics:I. Institutional framework of the particular economic system.
II. Size and composition of the labour force and labour market.
III. Labour as a factor of production- productivity and efficiency
condition of work-industrial relation standard of living
IV. Labours risk and problems.
V. Trade unionism
VI. Labours status and position in society
VII. Labour legislation.
Another different area of labour economics are:I. Advance theory of labour economics
II. Labour laws
III. Principles of personnel management and job evaluation
IV. Principle and practice of labour welfare
V. Theory and practice of trade union management.
Nature of Labour Economics:-

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Labour economics is in the process of development, its definition

tends to vary and change according to the nature of the
economy and is supposed to indicate the criteria for delimiting
its scope and enumerating and classifying the problems.
I. The theoretical section
II. The institutional section
A.

The Theoretical Section:-

The theoretical section of labour economics is concerned with

building up of models of economic behavior by making different
sets of assumption.
B.

The Institutional Section:-

The institutional section of labour economics is concerned with

studies of labour problems in an institutional historical content.
The nature of the labour problems changes with the change in
the institutional framework of the economic systems.
Characteristics of Labour:According to Dr. Alfred Marshell, labour may be defined as Any
exertion of mind or body undergone partly or wholly with a view
to have some good other than the pleasure derived directly from
the work.
Characteristics are as follows:1. Labour cannot be separated from the person who laboursIn other words we can say that labour cannot be separated
from labourer body and personality. Thus, the environment
and the working conditions in which the worker has to work
are of utmost important in the supply of labour.
2. The worker sells his work services but he himself remains
his own property: - In the words of Marshell, The worker
sells his work but he himself remains his own property.
Thus, the supply of labour along with other things depends
upon the forethought and selflessness of those who bring
up the labourer.

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3. Labour is perishable commodity, therefore it does not last

and cannot be stored for future- If a worker does not work
for a particular day, that day is lost for ever and he would
never be in a position to make use of his lost services.
4. As the seller of labour are commonly poor and have no
reserve fund, therefore they cannot with held labour from
the market.
5. The supply of labour cannot be decreased or increased
with fall or rise of wage- Hence, a paid adjustment of the
supply of labour to its demand is not possible.
6. Labour is not mobile as capital: - The difference in
environments, languages, customs etc at different places is
hinderences to the mobility of the worker from one place to
another.
7. The marginal productivity of labour is comparatively less
than capital.
8. Finally, labour is a living thing and that makes all the
differences.

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