Discuss the unique features of labour and labour markets in Education.
Answers
Explanation:
A commodity market refers to a physical place where buyers and sellers of a particular commodity gather for engaging in transactions while a labour market is viewed as a process by which supplies of a particular type of labour and demands for that type of labour are balanced, is an abstraction.
Secondly, unlike a commodity market, the relationship between a seller and a buyer in a labour market is not temporary and as such personal factors, which can be ignored in a commodity market, become important in a labour market.
Thirdly, unlike a commodity market, in a labour market there is a lack of perfect mobility which gives rise to a diversity of wage rates for the same type of work and we do not find a normal wage rate to which the market rate naturally tends. In other words, labour market is essentially an imperfect market.
Fourthly, wage fixing is an essential characteristic of the labour market, where (in the absence of unions) the buyer of labour normally sets the price but in the commodity market, it is normally the seller who sets the price.