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Backward bending supply curve of labour, the Glossary

In economics, a backward-bending supply curve of labour, or backward-bending labour supply curve, is a graphical device showing a situation in which as real (inflation-corrected) wages increase beyond a certain level, people will substitute time previously devoted for paid work for leisure (non-paid time) and so higher wages lead to a decrease in the labour supply and so less labour-time being offered for sale.^[1]

11 relations: Economics, Involuntary unemployment, Labour supply, Motivation crowding theory, Normal good, Opportunity cost, Overtime, Self-determination theory, Substitution effect, Utility, Wage.
Economics curves

Economics

Economics is a social science that studies the production, distribution, and consumption of goods and services.

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Involuntary unemployment

Involuntary unemployment occurs when a person is unemployed despite being willing to work at the prevailing wage.

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Labour supply

In mainstream economic theories, the labour supply is the total hours (adjusted for intensity of effort) that workers wish to work at a given real wage rate. Backward bending supply curve of labour and labour supply are labour economics.

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Motivation crowding theory

Motivation crowding theory is the theory from psychology and microeconomics suggesting that providing extrinsic incentives for certain kinds of behavior—such as promising monetary rewards for accomplishing some task—can sometimes undermine intrinsic motivation for performing that behavior. Backward bending supply curve of labour and motivation crowding theory are labour economics.

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Normal good

In economics, a normal good is a type of a good which experiences an increase in demand due to an increase in income, unlike inferior goods, for which the opposite is observed.

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Opportunity cost

In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives.

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Overtime

Overtime is the amount of time someone works beyond normal working hours.

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Self-determination theory

Self-determination theory (SDT) is a macro theory of human motivation and personality that concerns people's innate growth tendencies and innate psychological needs.

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Substitution effect

In economics and particularly in consumer choice theory, the substitution effect is one component of the effect of a change in the price of a good upon the amount of that good demanded by a consumer, the other being the income effect.

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Utility

In economics, utility is a measure of the satisfaction that a certain person has from a certain state of the world.

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Wage

A wage is payment made by an employer to an employee for work done in a specific period of time.

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References

[1] https://en.wikipedia.org/wiki/Backward_bending_supply_curve_of_labour

Also known as Backward bending labor supply curve, Backward bending labour supply curve, Backward bending supply curve of labor, Backward-bending supply curve, Backwards bending labor supply, Backwards-bending supply curve.