What affects workers' decisions on whether to work?

 

Current market wage

The workers decision on whether to work if influenced by the prevailing wages in the market. The compensation package that comes with working should be appealing to a worker in order for him or her to make the decision to work. A worker knows how much he or she is worth when it comes payment for work done. If the current market wage does not meet a workers expectations then he or she may decide not to work, or wait a little longer for the wage rate to rise or even seek for an alternative that will compensate him or her in a deserving manner. If the current market wage is fair and meets the expectation of the worker then he or she will decide to work.

Step-by-step explanation

Trade-off between leisure and consumption

(A worker's preferences for leisure over consumption or consumption over leisure)

The workers decision on whether to work is highly determined by how much value they place on leisure (free time) or consumption such that one overrides the other. For a worker who has a high preference for leisure, he or she may decide to work less or even decide not to join the workforce. But this particular individual will be giving up his consumption powers because he or she will only be able to purchase less of the things that he or she needs. For a worker who has a high preference for consumption, he or she will work more and his or her decision to join the workforce will be driven by this factor. This particular individual will be giving up his or her leisure so as to work and buy more goods for consumption.