This was a traditional question which required the candidates to
Distinguish between labour and labour force;
State four reasons for the differences in earnings among workers.
The candidates attempted the question very well and scored above average marks. They were able to state that labour is a factor of production that represent all human effort, both physical and mental, directed towards production while labour force refers to the employable population i.e. the population within the working age group who are employed plus all those who are unemployed but actively seeking work.
The candidates were also able to state the following factors as reasons for differences in wages among worker.
Differences in productivity among workers.
Supply and Demand condition for skills:
Skills that are relatively scarce relative to demand attract higher earnings.
Working conditions: Safety, convenience, etc.
Prestige associated with job.
Immobility of labour and cost of movement.
Man-made barriers e.g. trade union policies, licensing, etc.
Cost mid length of training.
Government policy.
Discriminatory practices; gender discrimination.
