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Topic Videos

Transfer Earnings and Economic Rent (Labour Markets)

Level:
A-Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 21 Mar 2021

Earnings to the factor of production labour are made up of wages plus overtime pay, bonuses and commission. This short revision video looks at the difference between transfer earnings and economic rent.

Transfer Earnings and Economic Rent

Transfer earnings

The minimum reward required to keep factors of production, such as labour, in its current occupation.

Economic rent

Any amount earned by a factor of production, such as labour, above the minimum amount they require to work in a current occupation.

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