The labour supply curve is drawn on the assumption that labour is perfectly mobile. Again this is open to dispute. People are frequently geographically immobile for a variety of reasons:
● The cost of moving. It is an expensive business to move to another part of the country, particularly to areas where housing costs are high, like London.
● There may be shortages of housing in certain areas, or it may be difficult or even impossible to sell a house in other areas.
● There may be social ties in the form of family and friends that people may be reluctant to leave.
● For people with children, schooling will be important. For example, parents are reluctant to relocate when their children are working for GCSE or A level examinations.