| What is an Immobile Factor of Production? Is it an Example of Market Failure?
-Make an Example with Land and Capital | -A Factor of Production that can't be Easily moved to another Area of the Economy. This means there's an Inefficient Use of Resources - Unused or Underused. This means there's a Market Failure
-Land can't be Moved from 1 Place to Another, and it may be Limited in what it can Do - Only can grow Wheat
-Capital can be Immobile due to the Sheer Size - Factories or Nuclear Reactors [Specialist Nature] |
| Why, for Labour, can Geographical Immobility occur? [People can't move due to the sake of Moving] | -Disparity in House Prices, Rent and Cost of Living - Cornwall vs South East England. Workers may not be able to Move
-High Costs in just Moving Houses
-Reluctant to Move due to Family, Friends and Change
-Imperfect Information about Jobs available in Different Areas [They don't know if that's Advantageous] |
| Why, for Labour, can Occupational Immobility occur? [People can't move due to the Jobs]
-What can this lead too? | -Not enough Training, Education or Skills for a Different Job
-Lack of relevant Qualifications or Membership [Doctors have to Register with General Medical Council]
-Not enough Work Experience
-Eventually this can cause Structural Unemployment |
| How can the Government help improve Labour Mobility? | -Improving Geographical Immobility: Governments off Relocation Subsidies, or Mortgage Reliefs to make Moving to an Area more Affordable for Workers. Governments also to have more Construction of Housing in Areas where its Relevant
-Improving Occupational Immobility: Provide more Training Programmes, Better Education, or help Workers to see Jobs in other Locations or Industries |
