How is the term 'labor' defined in economics?

Answer 1

Labour economics seeks to understand the functioning of the market and dynamics for labour. Labour markets function through the interaction of workers and employers. Labour economics looks at the suppliers of labour services (workers), the demanders of labour services (employers), and attempts to understand the resulting pattern of wages, employment, and income. It is an important subject because unemployment is a problem that affects the public most directly and severely. Full employment (or reduced unemployment) is a goal of many modern governments. There are two sides to labour economics. Labour economics can generally be seen as the application of microeconomic or macroeconomic techniques to the labour market. Microeconomic techniques study the role of individuals and individual firms in the labour market. Macroeconomic techniques look at the interrelations between the labour market, the goods market, the money market, and the foreign trade market. It looks at how these interactions influence macro variables such as employment levels, participation rates, aggregate income and Gross Domestic Product. source: wikipedia.

Answer 2

Labor economics is studying the interactions and relationships of employees and employers through the lens of economic analysis.

Labor economics looks at the various decisions that employees make in order to be a part of the labor market and work (supply their labor). It also looks at the various decisions that employees make in order to be a part of the labor market and hire (demand labor). These factors include wages, prices, profits, and working conditions. These factors are analyzed with economic tools such as: utility, scarcity, monopsony, monopoly, competitive markets, externalities, and many other economic tools. Labor economics is used to scrutinize labor policies like minimum wage, education, and safety regulations.

Answer 3

Labor is human activity, whether manual or intellectual, that produces the goods or provides the services in an economy.