labor between competitive labor markets is likely to prevent the total number of hours worked from falling as the wage rate increases Thus we shall assume that supply curves for labor in particular markets are upward sloping Shifts in Labor Supply What events shift the supply curve for labor? People supply labor in order to increase their utility—just as they demand goods and services in order to increase their utility The supply curve for labor will shift in response to changes in the same set of factors that shift demand curves for goods and services Changes in Preferences A change in attitudes toward work and leisure can shift the supply curve for labor If people decide they value leisure more highly, they will work fewer hours at each wage, and the supply curve for labor will shift to the left If they decide they want more goods and services, the supply curve is likely to shift to the right Changes in Income An increase in income will increase the demand for leisure, reducing the supply of labor We must be careful here to distinguish movements along the supply curve from shifts of the supply curve itself An income change resulting from a change in wages is shown by a movement along the curve; it produces the income and substitution effects we already discussed But suppose income is from some other source: a person marries and has Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 648