ELI5: Explain Like I'm 5

Frisch elasticity of labor supply

Frisch elasticity of labor supply is a measure of how sensitive people are to changes in wages. It tells us how much extra people want to work when their wages increase. If people's Frisch elasticity of labor supply is high that means their labor supply (the amount of work they are willing to do) is very sensitive to wage changes. This means that if wages go up they will want to work a lot more than they were before. On the other hand, if their Frisch elasticity of labor supply is low that means they don't really care if wages go up or down, so they won't want to work any extra if wages change.