Backward Bending Supply Curve of Labor:

Definition:

"Wages can increase to a point where less labor is offered in the market".

Explanation:

We have stated earlier those supply curves are positively sloped. There can be sometime exceptions to the rule there is a backward bending supply curve of labor as is illustrated in the following schedule and a diagram.

Schedule:

Wage Rate (in Dollars)	Working Hour (per day)
10	10
20	12
30	13
50	10

Diagram/Figure:

In the figure (5.4), a labor is willing to work for 10 hours a day at a wage rate of $10 per hour. When the wage rate increases to $30 per hour, he puts in 13 hours of work. If wage rise to $50, he then prefers leisure to work and is willing to work for 10 hours only. The supply curve SS^/ shows that a worker puts in less labor when wage rate rises above $30 per hour. The supply of labor then is negatively slopped and is backward bending.

The reasons of the backward bending supply curve of labor are:

(i) The substitution of leisure for work.

(ii) Increase in income which leads to rise in demand of normal commodities including leisure.