Question

Write short note on 'Features of labour'.

Answer 1

Labour has some characteristic features. They are:

1. Labour cannot be isolated from the labourer - Labour and labourers are indispensable for each other. A labourer carries his labour everywhere he goes.
2. Bargaining power of labour - It is the ability of buyer to purchase articles at least price and that of seller to a higher price is called work bargaining power. A labourer sells his labour for wages and the employer buys by compensating money.
3. Inelastic supply of labour - In any particular time period, the elasticity of supply is inelastic in any nation. It means their supply can neither be raised nor subsided. They cannot be made to order like other goods.
4. Increase in wages may reduce the supply of labour - In the event if the wages are high, the whole family members are to work for their living. On the other hand if the wages are high, then only one family member may work and hence the supply reduces.
5. Difficult to find out the cost of production of labour - It is difficult to ascertain the cost of labour done by a labourer since it is based on his efficiency, experience, human morale.
6. Labour creates capital - Capital which is considered as a separate factor of production, is in reality is the result of reward for labour. He earns property out of production. Therefore, capital is formulated and accumulated by labour.