Kazakh labour market

1.

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2. Testing Previous Knowledge

The concepts/terms learnt:
•Factors of production
•Factor Incomes
•Derived demand
•Employer/ Firm
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3. Lesson Objectives

The students will be able to
Understand the nature of factors of production
Analyse the incomes earned by factors of production.
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4. Activity 1

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(5.51 min)
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5. Class Discussion

Nature of Factors of Production.
Income earned by each factor
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6. Reflection

1. What did you learn today?
2. Where are you going to use the information you learnt
today?
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7.

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8. Lesson Objectives

The students will be able to
Explain the peculiarity of resource markets,
particularly the labour market
Apply to real world situation.
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9.

Group Division
GROUP 1:
KAZAKH LABOUR MARKET
GROUP 2:
MINING
GROUP 3:
GROUP 4:

10.

Activity 2-Critical Thinking
(25 min)
Preparation Time: 10 min
Presentation: 15 min
Evaluate the present scenario about the type of
labour market given to you.
Тақырыпты ашу шеберлігі
2 балл
Уақытты ұтымды пайдалануы
(2 минут)
Креативтілігі
1 балл
2 балл

11. Class Discussion

Nature of Kazakhstan’s Labour markets
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12.

Reflection
What did you learn today ?
Чему вы научились сегодня?

13.

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14. Lesson Objectives

The students will be able to
Analyse the factors affecting the demand for labour.
Analyse the factors affecting the supply of labour.
Explain with the help of a diagram how wage is
determined.
Apply to real world situation.
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15.

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16. Labour Force/Supply

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17. Demand for Labour

Labour demand is a
derived demand
The demand for an additional
amount of labour depends on the
Marginal Revenue product (MRP)
and Marginal cost (MC) of the
worker.
MRP = MPP X P
MRP > MC , then the firm will
employ the worker since it will
increase profit.
The firm only employs up to the
point where MRP=MC
Demand for Doctors > Demand for cleaner
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Demand
for Doctors is inelastic as there
is a high demand for doctor17

18.

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19. Supply for Labour

The total number of hours that labour is willing
and able to supply at a given wage rate.
Labour force
Participation rate =
Population of working age
Employment rate =
unemployment rate =
unemployment
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number of people
currently employed
population of
working age
Labour force
The Supply curve for Labour tends to be
upwardly sloping
Substitution effect of a rise in wages: E to F
Workers will tend to substitute income for
leisure as leisure now has a higher
opportunity cost. This effect leads to more
hours being worked as wages rise
Income effect of a rise in wages: F to G
This occurs when an increase in wages causes
workers to work fewer hours.
This is because workers can get a higher
income by working less hours. Therefore they
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may work less.

20. WAGE RATE DETERMINATION

Equilibrium Wage Rate
New Equilibrium Wage Rate
Demand for Labour = Supply of Labour
Demand for Labour = New Supply of
Labour
(Wage rate decrease)
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21. Changes in equilibrium Wage rate

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22. Elasticity of Demand and Supply of labour

ELASTIC
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INELASTIC
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23.

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24.

Reflection
What did you learn today ?
How are you going to transfer this
knowledge to next level?