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Terms in this set (23)

-changes in preferences and social norms
--Changes in preferences and social norms can lead workers to increase or decrease their willingness to work at any given wage

-changes in population
--Changes in the population size generally lead to shifts of the labor supply curve. A larger population tends to shift the labor supply curve rightward as more workers are available at any given wage; a smaller population tends to shift the labor supply curve leftward

-changes in opportunities
--when superior alternatives arise for workers in another labor market, the supply curve in the original labor market shifts leftward as workers move to the new opportunities. Similarly, when opportunities diminish in one labor market—say, layoffs in the manufacturing industry due to increased foreign competition—the supply in alternative labor markets increases as workers move to these other markets

-changes in wealth
--A person whose wealth increases will buy more normal goods, including leisure. So when a class of workers experiences a general rise in their wealth levels—say, due to a stock market boom—the income effect from the wealth increase will shift the labor supply curve associated with those workers leftward as workers consume more leisure and work less. Note that the income effect caused by a change in wealth shifts the labor supply curve, but the income effect from a wage rate increase—as we discussed in the case of the individual labor supply curve—is a movement along the labor supply curve