Next we need to look at total labor supply. It makes more sense to look at labor suppy by occupation than by industry. For example, auto manufacturers will employ mechanical engineers, electrical engineers, computer programmers, accountants, assembly line workers, and employees with many other skills. The salaries paid to computer programmers at Ford will be similar to those paid to computer programmers with similar skills in other industries and will not necessarily be related to the salaries paid to mechanical engineers.

    The supply of labor for a particular occupation is simply the sum of the supply offered by all the individuals with the appropriate qualifications.

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