Economics » Factors of Production » Factor Mobility and Efficiency

Labour Mobility and Efficiency

Factor mobility measures the extent to which factor inputs such as land, labour, and capital can easily switch between alternative uses with no loss of efficiency.

Labour Mobility

This is the ease with which labour can move from one geographical area to another or from one occupation to another.

Types of Mobility of Labour

  1. Geographical Mobility of Labour: This is the ease with which a worker or labourer can move from one geographical location to another to continue the same job or get a new one.
  2. Occupational Mobility of Labour: This is the ease with which workers or labourers can move from one job to another, e.g. when a musician becomes an actress.

Factors Affecting Mobility of Labour

  1. Cost of transportation
  2. Climatic conditions
  3. Ability or attitude
  4. Accommodation problems
  5. Family and cultural ties
  6. Discrimination
  7. Wage rate
  8. Personal reasons
  9. Language barriers
  10. Social and economic structure
  11. Employment prospects/age

Labour Efficiency

This is the ability of labour to increase output without increasing its quantity (i.e. the quantity of labour).

Ways by which the Efficiency of Labour can be improved

  1. Assurance of job security
  2. Increased level of technology
  3. Efficient management.
  4. Promotion
  5. Application of division of labour

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