Advantages And Disadvantages Of Production Labour

This is one of the classic factors of production, along with land and capital, discussed by economists for well over a century. Labour is a human effort used in production which also includes technical and marketing expertise. The payment for someone else 's labour and all income received from ones own labour is wages. Labour can also be classified as the physical and mental contribution of an employee to the production of the goods. Even in today 's technologically advanced world, human labour is still needed to help process resources into products or to utilize resources to provide services. Different types of labour include production labour and service labour. An example of production labour is the classic factory worker. Service labour includes people involved in providing a service, such as doctors, lawyers, accountants, sales and marketing people.

One of the most important ideas in labour economics is to think of the set of marketable skills of workers as a form of capital in which workers make a variety of investments. This perspective is important in understanding both investment incentives, and the structure of wages and earnings.

Loosely speaking, human capital corresponds to any stock of knowledge or characteristics the worker has (either innate or acquired) that contributes to his or her “productivity”. This definition is broad, and this has both advantages and disadvantages. The advantages are clear: it enables us to think of not only the years of schooling,