Answer to Question #125638 in Microeconomics for Lala

Question

give two examples of events that could shift the supply for labor and explain why they do so

Answer 1

The main method of reducing the supply of labor is to restrict the employment of non-union members. This is achieved by legislative consolidation of such a norm, i.e. the highest form of social contract is concluded and the norm can be confirmed and strengthened by collective bargaining agreements.

One way to increase labor supply is to increase the retirement age as well as the influx of working-age immigrants into the country.