Factor Mobility

Factor mobility is the ability or ease with which factors of production can be moved or reallocated between different productive uses.

Occupational mobility is the ability to move factors of production between productive uses

Geographical mobility is the ability to move factors of production to different locations

Importance of factor mobility

• Increase in productivity which can lead to making more profit

• Different factors of production used efficiently

• Enables firms to produce items as the quantity and quality of factors of production changes.

• Changes the way items are produced

Factor immobility

• Geographic immobility due to family ties

• Occupational immobility due to certain jobs needing specific skills and levels of education.