Labour
In common sense, labour means physical work. But in economics, it has wider meant. Labour refers to that physical or mental effort which is undertaken to obtain wealth or to earn an economic reward. The effort made without any economic motives but simply to derive pleasure is not labour.
Thus, labour refers to physical or mental exertion of human beings for economic benefit but not for pleasure. It is an indispensable factor of production because other factors of production will be useless in absence of labour.
Characteristics/ Features of labour
Labour is human factor. So, it is not treated as material factor of production like land and capital. Labour exhibits the following characteristics:
1) Labour(work) cannot be separated from the labourer(worker) himself:
Other factors of production like land and capital can be separated from their owners i.e., landlords and capitalists. But labour cannot be separated from labourer.
2) The labourer (Worker) does not sell himself; he sells only his labour(work):
A labourer sells only his labour in turn for wages but not himself.
3) Labour is perishable factor:
Labour is perishable factor because it is not possible to store it in future. If a labourer does not work on a particular day, the labour of that day is lost forever. The lost labour cannot be regained.
4) Labour is less mobile:
Labour is less mobile than capital because labourer is a human being with all his feelings of affections and attachments with the place he is living and with the friends and relatives who live there. So, it is difficult for him to leave that place immediately.
5) Supply of labour is less elastic:
Supply of labour cannot be increased or decreased during a short period of time. It takes time to increase its overall supply by expanding population and providing them with suitable training and skill required.
6) Differs in efficiency:
Labour differs in efficiency. Some are more efficient than others. The differences in efficiency are caused by their physical and mental capabilities as well as by experience, training and skill impacted to him.
7) Weak bargaining power:
Labourers have weak bargaining power because labour is perishable factor. In general, labourers are illiterate and poor. So, they possess weak bargaining power.
8) Active factors:
Labour is an active factor of production because land and capital cannot be utilized without labour in production.
Chapter 1 Part 10
