Home Page                      Contact Us                      About Us                      Privacy Policy                       Terms of Use                      Advertise 

Home Theory of supply Backward Bending Supply Curve of Labor


Backward Bending Supply Curve of Labor:




"Wages can increase to a point where less labor is offered in the market".




We have stated earlier those supply curves are positively sloped. There can be sometime exceptions to the rule there is a backward bending supply curve of labor as is illustrated in the following schedule and a diagram.




             Wage Rate (in Dollars)

               Working Hour (per day)

10 10
20 12
30 13
50 10





In the figure (5.4), a labor is willing to work for 10 hours a day at a wage rate of $10 per hour. When the wage rate increases to $30 per hour, he puts in 13 hours of work. If wage rise to $50, he then prefers leisure to work and is willing to work for 10 hours only. The supply curve SS/ shows that a worker puts in less labor when wage rate rises above $30 per hour. The supply of labor then is negatively slopped and is backward bending.


The reasons of the backward bending supply curve of labor are:


(i) The substitution of leisure for work.


(ii) Increase in income which leads to rise in demand of normal commodities including leisure.

Relevant Articles:

Meanings of Supply
Law of Supply
Difference Between Shift in Supply Curve and Movement
Determinants of Supply
Backward Bending Supply Curve of Labor

Principles and Theories of Micro Economics
Definition and Explanation of Economics
Theory of Consumer Behavior
Indifference Curve Analysis of Consumer's Equilibrium
Theory of Demand
Theory of Supply
Elasticity of Demand
Elasticity of Supply
Equilibrium of Demand and Supply
Economic Resources
Scale of Production
Laws of Returns
Production Function
Cost Analysis
Various Revenue Concepts
Price and output Determination Under Perfect Competition
Price and Output Determination Under Monopoly
Price and Output Determination Under Monopolistic/Imperfect Competition
Theory of Factor Pricing OR Theory of Distribution
Principles and Theories of Macro Economics
National Income and Its Measurement
Principles of Public Finance
Public Revenue and Taxation
National Debt and Income Determination
Fiscal Policy
Determinants of the Level of National Income and Employment
Determination of National Income
Theories of Employment
Theory of International Trade
Balance of Payments
Commercial Policy
Development and Planning Economics
Introduction to Development Economics
Features of Developing Countries
Economic Development and Economic Growth
Theories of Under Development
Theories of Economic Growth
Agriculture and Economic Development
Monetary Economics and Public Finance

History of Money

                   Home Page                Contact Us                About Us                Privacy Policy                Terms of Use                Advertise               

All the material on this site is the property of economicsconcepts.com. No part of this website may be reproduced without permission of economics concepts.
All rights reserved Copyright
2010 - 2015