NTA NET/JRF Dec 2018 Labour Welfare Code 55 Labour Market Rate, Review, Comment & Follow me tps://www.unacademy.comluser/barthwal.priyashi
CONCEPT OF LABOUR MARKET *Labour Market is defined as a pool of all potential workers who compete for job. It also includes the employers who competes for workers. Labour markets are based on the supply & demand of labour in a country or specific location that are able & willing to work. Characteristics of Labour Market It is process in which a balance between supply of a particular kind of labour & demand is maintained. It is a market where wage rates differ for same kind of work due to lack of perfect mobility Long term relationship between buyer & seller. Price does not change very often but remains constant for a period f ti
maustrial revolution has brought trends in the bargaining power of employers & employees within the labour market. Classification of Labour Market Clark Kerr has given the following models of the labour market: 1. The Perfect market 2. The neo-classical market 3. The natural market 4. The institutional market 5. The management market
erfect Market: In this type of market all the buyers & sellers have freedom to make an entry or exist any time in the market area. There are large number of undifferentiated buyers & sellers in the market area. It is possible to regularize the market under such circumstances & mostly the single price prevails in the market. 2) The Neo-classical Market: It accept the imperfection & inequality exists in the market as all the workers do not acquire same sort of skills. Inspite of all these imperfections & inequalities, it is assumed that wages will tend towards equality for workers in a given skill classification.
e Natural Market: Here workers are innocent & ignorant ; therefore do not have detailed knowledge of the market. They are not capable enough to analyze the advantages of the jobs they hold against the kind of the alternatives. They don't develop grudge against the employers, who constantly make an effort to create the greatest bargains in the labour market. 4) The Management Market: In the management market, there is a close relationship between the wage setting & the allocation of labour. It is more of a hypothetical kind of marketing instead of real one.
Institutional Market: t trade unions, employers, & In this market; the policies of trade unions, employers, & government influences the wage movements. Here, labour make does not fix the upper & lower limits of wages but they are fixed by the institutional policies; which therefore reduces the mobility of labour * In this market, uniformity in a particular kind of grade of worker is found Institutional labour market is more popular where the influence of demand & supply existing in labour market is regulated by the policies of union , employers & the government.
Edmund Phelps has classified labour market in two types: 1) Structured Market: The market which is for the public employees where the entry & exist can be made by legislation & administration rules. The market which is known as the non-unions labour market in any big organization where all the rules will be made by the personnel department. The third type of labour market is where the rules have been formulated considering the collective bargaining agreements and the norms of trade union.
2) Unstructured Labour Market: *lt is a market where the specified rules by any authority have not been formulated but people get the market information through established institutions. *Here people have to attach themselves with any type of organization & show their connectivity. There are no unions, prescribing their rules; & workers are usually unskilled Labour is paid according to the piece of production rather than time & not a huge capital have been invested in this type of labour market. This market is devoid of any fringe benefits & basically for unskilled or semiskilled workers.
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