QUESTION 2

There are various factors, internal and external, that affecting individual labour supply decision in the labour market. A study conducted by Bhattarai (2007), found that the hours on housework, non-labour income, marital status and gender have significantly negative impact on labour supply[i].

[i] Bhattarai, K (2017). Determinants of Wages and Labour Supply in the UK, Chinese Business Review, Mar. 2017, Vol. 16, No. 3, 126-140. doi: 10.17265/1537-1506/2017.03.002 Discuss how those variables affect the decision of individual in the labour market.

(25 Marks)