Geography & History Notes | KCSE, NECTA, ZIMSEC & GCSE

  All units of labour are not homogenous and workers productivity varies. A of labour differs from another in terms of skills, education attainment physical ability. Therefore, efficiency of labour differs from worker to worker, is therefore wrong to assume that all units of labour are homogeneous. Labour tends to be immobile yet the theory assumes perfectly mobility, theory assumes perfect mobility of labour between different employments places. However, labour tends to be immobile both occupationally geographically. Perfect competition does not exist in true market situation. There imperfection in labour markets due to government interference in fixing wages All units of labour are not fully employed as there are cases of unemployment and under employment. There is no full employment situation of labour in developing countries due to excess supply of unskilled labour resulting in some form of unemployment and underemployment. Government usually intervenes in fixing wages yet the ...