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labour market (JO, J4)<br />A factor market consisting of firms as buyers and workers as sellers which exists to match job vacancies with job applicants and to set wages. It is linked to the product market because the demand for labour is derived from the demand for goods and services. Much of the notion of the demand for labour is derived from MARGINAL PRODUCTIVITY THEORY, the determinants of LABOUR suPPLY have attracted more attention. It is often difficult to analyse labour markets because it is not clear who is participating in a particular market, especially one international in scope, e.g. a market for financial dealers.<br /><em>See also:</em> dual market; external market; internal labour market; local labour market; search cost<br /><em>Reference</em><br />Addison, J.T and Siebert, WS. (1979) The Market for Labor: An Analytical Treatment, Santa Monica, CA: Goodyear.
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