Labour
Meaning of Labor
Marshall says, “By labour is meant the economic work of man whether with hand or head.” Similarly, S.E. Thomas defines labour as, “all human efforts of body or of mind which are undertaken in the expectation of reward.”
The main features of these definitions are:
1) human work and not the work done by machines or animals;
2) physical or mental work;
3) productive activity, and
4) the aim of earning a reward.
Thus, it is clear that labour is any mental or physical work which produces goods and services. This work is done not for the sake of pleasure or love but with a view to earn money for the satisfaction of material wants. For instance when a teacher teaches his own child, he is not doing labour because he is not getting any money for work done, but, when he contracts a tuition, he is getting money and his work will be treated as labour, in economics.
Characteristic of Labor
As a factor of production labour has the following characteristics:
1. A Perishable Factor. Labour is more perishable than other factors of production. It means if a worker does not work for a day, then his labour hours are lost forever. It can neither be restored, nor postponed nor accumulated for the next day. Today‘s loabour must be rendered today, otherwise it will perish.
2. Weak Bargaining Power. Labour has weak bargaining power because it is perishable. Labourers are generally poor. They have to render labour irrespective of price (wage) offered to them because they cannot postpone labour or accumulate it like capital till tomorrow. It is because of their weak bargaining power that the workers are exploited.
3. Inseparable. Labour is inseparable from the labourer. A machine can be separated from its owner and transported anywhere, but the labourer has to go personally to put in labour.
4. An Active Factor. Other factors of production depend upon labour for their productivity. It is the labour through which other factors are brought into the production process. Thus, labour is an active factor of production.
5. Labourer Sells Labour. A labourer sells his labour, not himself . for wages. A labourer is a citizen of a country. He does not become a slave. If he finds his work discordant to his interest, he can leave and find work somewhere else.
6. Less Mobile. Labour is less mobile. Of all the things labour is the most difficult to transport. This is so because labourer is unwilling to part with his company, relatives and environments.
7. Slow Supply. Another peculiarity of labour is that even with the increase in demand its supply cannot be increased or decreased simultaneously. It takes time to increase the supply of labour even by migration.
8. Differences in Efficiency. All workers are not equally efficient. Some are more efficient because of their ability, training and skill. Efficient workers work better and their wages are accordingly higher.
9. Both a Means and an End. A labourer is a means of production as well as an end. He produces goods and consumes them.