Nature and Scope of Labur Economics

LABOUR ECONOMICS Labour Economics:Economics:“Labour Economics may be defned as a study o the organization, institutions and behavior o the labour market in an industrising or industrial economy”.

According to Dole oder:“Labo Labour ur econ econom omic ics s or manp manpow ower er econ econom omic ics s is prim primar aril ily y conce oncerrned ned with ith eci ecien entt uti utiliz lizatio ation n and and conse onserrvati ation o  manpower and resources. !t studies and seeks to understand the processes by which manpower is applied and utilized in modern society. !t is concerned o natural resources in the land”.

Sco!e o" 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 o social security and welare etc. "ccording to #r. $.%.&inha, the ollowing areas o study may be listed to all under the preview preview o labour economics'( !. !nstitutio !nstitutional nal ramewor ramework k o the particular particular economic economic system system.. !!. &ize and and compositi composition on o the the labour labour orce orce and labour labour mark market. et. !!!. !!!. Labo Labour ur as a acto actorr o prod produc ucti tion on(( prod produc ucti tivi vity ty and and eci ecien ency cy condition o work(industrial relation standard o living !). !). Labour Labour*s *s risk risk and and probl problems ems.. ). +rade rade uni union onis ism m )!. Labour Labour*s *s status status and and posit position ion in in societ society y )!!. )!!. Labo Labour ur legi legisl slat atio ion. n. "nother dierent area o labour economics are'( !. "d "dvan vance ce theor theory y o labour labour econ economi omics cs !!. !!. Labo Labour ur laws aws !!!. %rincip %rinciples les o perso personnel nnel managem management ent and and -ob evaluat evaluation ion !). !). %rincip %rinciple le and practice practice o labour labour welar welare e ). +heory +heory and practice practice o o trade trade union union manageme management. nt.

Nature o" Labour Economics:-

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Labour economics is in the process o development, its defnition tends to vary and change according to the nature o the economy and is supposed to indicate the criteria or delimiting its scope and enumerating and classiying the problems. !. +he theoretical section !!. +he institutional section

A'

*+e *+eoretical Section:-

 +he theoretical section o labour economics is concerned with building up o models o economic behavior by making dierent sets o assumption.

B'

*+e Institutional Section:-

 +he institutional section o labour economics is concerned with studies o labour problems in an institutional historical content.  +he nature o the labour problems changes with the change in the institutional ramework o the economic systems.

C+aracteristics o" Labour:"ccording to #r. "lred arshell, labour may be defned as “"ny e/ertion o mind or body undergone partly or wholly with a view to have some good other than the pleasure derived directly rom the work”.

0haracteristics are as ollows'(

1. Labour cannot be separated rom the person who labours( !n other words we can say that labour cannot be separated rom labourer body and personality. +hus, the environment and the working conditions in which the worker has to work are o utmost important in the supply o labour. 2. +he worker sells his work services but he himsel remains his own property' ( !n the words o arshell, “+he worker sells his work but he himsel remains his own property.  +hus, the supply o labour along with other things depends upon the orethought and sel3essness o those who bring up the labourer.

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4. Labour is perishable commodity, thereore it does not last and cannot be stored or uture( ! a worker does not work or a particular day, that day is lost or ever and he would never be in a position to make use o his lost services.

5. "s the seller o labour are commonly poor and have no reserve und, thereore they cannot with held labour rom the market. 6. +he supply o labour cannot be decreased or increased with all or rise o wage( 7ence, a paid ad-ustment o the supply o labour to its demand is not possible. 8. Labour is not mobile as capital' ( +he dierence in environments, languages, customs etc at dierent places is hinderences to the mobility o the worker rom one place to another. 9. +he marginal productivity o labour is comparatively less than capital. :. ;inally, labour is a living thing and that makes all the dierences.

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