access to a spouse’s income, or receives an inheritance, or wins a lottery Those nonlabor increases in income are likely to reduce the supply of labor, thereby shifting the supply curve for labor of the recipients to the left Changes in the Prices of Related Goods and Services Several goods and services are complements of labor If the cost of child care (a complement to work effort) falls, for example, it becomes cheaper for workers to go to work, and the supply of labor tends to increase If recreational activities (which are a substitute for work effort) become much cheaper, individuals might choose to consume more leisure time and supply less labor Changes in Population An increase in population increases the supply of labor; a reduction lowers it Labor organizations have generally opposed increases in immigration because their leaders fear that the increased number of workers will shift the supply curve for labor to the right and put downward pressure on wages Changes in Expectations One change in expectations that could have an effect on labor supply is life expectancy Another is confidence in the availability of Social Security Suppose, for example, that people expect to live longer yet become less optimistic about their likely benefits from Social Security That could induce an increase in labor supply Attributed to Libby Rittenberg and Timothy Tregarthen Saylor URL: http://www.saylor.org/books/ Saylor.org 649