Definition
- Perfectly competitive labour market
- A perfectly competitive labour market is one where neither workers nor employers have market power, so a firm can hire all it wants at the going wage.
- Not to be confused with: Labour market
- A labour market is the market for one type of labour, defined by the kind of work, the skill level and the location.
Test yourself
What is the difference between perfectly competitive labour market and labour market?
Labour market: A labour market is the market for one type of labour, defined by the kind of work, the skill level and the location.