There is what economists refer to as a backward-bending supply curve. It is a situation in which the labour is satisfied with what he earns as real wage and prefers leisure to more work and earnings. That is, higher wages would lead to a fall in labour supply. Though at the initial stage, higher wages lead to higher hours of work until labour finds that he is satisfied with what is earned and the hours worked decline. In economics textbooks,…
Read the full article here