The mobility of labour is mainly determined by?

A. the age of workers
B. government policy
C. trade unions
D. wage rate differentials

Correct Answer:

Option D – wage rate differentials

Explanation

The mobility of labour refers to how easily workers can move to different jobs within the economy. One of the major determinants of mobility of labour is the difference in wage rage. People will most likely be willing to move from one job to another when they are offered a job that pays higher than the current one.