As the wage rate increases, the quantity of labor supplied by an individual worker will raise the quantity of labor supplied through the substitution effect.
For labor supply, the substitution effect is always positive.
It means that a higher wage rate always induces a greater quantity of labor supplied. For any worker, the substitution effect of a wage increament will always reduces the amount of leisure time consumed by him and increases the amount of time which is spent on working.
A higher wage thus produces a positive substitution effect on labor supply.
With the increase in the labor supply the supply curve for labor will move upward.
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