Labor as a factor of production: Labor is human recourse of production. Any form of physical or mental effort done to the production of goods and services with a view to earn reward, is called labor e.g. Worker, clerk, teacher, doctor, judge, typist etc. According to Marshall, "Any exertion of mind or body undergone partly or wholly with a view to some good other than the pleasure derived directly from the work is called labor. Characteristics of Labor: These are the characteristics of labor as a factor of production. 1. Labor is Inseparable: Labor is inseparable from the labor himself, because he is the source of his own labor power. 2. Sole of Labor: A laborer cannot be sold but a laborer has to sell, his labor in person. 3. Perishable: The labor of a laborer cannot be stored because it is perishable. 4. Bargaining power: Laborer has a weak bargaining power and he has to accept the wage offered to him. 5. Wastage of labor: Labor ban be wasted by sitting idle, wasting of time and doing nothing. It is the wastage of his resources. 6. Supply of Labor: There is a direct relationship between the supply of labor and the wage rate in respect of labor force point of view. But by the entrepreneur's point, with the increase in supply of labor results in reduction of wages. 7. Mobility: A laborer is free to change his profession, place, and grade of labor but his mobility is limited due some limitation i.e. Transport facilities, customs and tradition etc. 8. Difference in Labor power: The laborers are differentiated in respect of skill power of efficiency, education, training etc. 9. No increase in supply quickly: There can be no rapid adjustment of the supply of labor to demand for it because supply cannot be increased quickly nor it can be reduced.
