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Questions tagged [labor-economics]

Labor economics is the branch of microeconomics that studies labor markets and its peculiarities. Labor economists usually study topics such as career choice, returns to schooling, determinants of labor productivity, wages, gender and racial gaps.

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How to derive labour demand given MPN and N supply? [on hold]

Suppose there is an economy where MPN=A(2000-0.5N), and the NS (Labor supply) = 1000+4(1-t)w where t=payroll tax rate and w=real wage. If I know that A=1 and t=0, how would I find the Labor demand ...
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Intensive/Extensive Labor Margins

I'm trying to understand why firms use the extensive and intensive labor margins, and the different trade-offs and costs involved. The intensive margin requires higher overtime payments and the ...
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Help me find answers to part a and b [on hold]

U=(C^a)* L^(1-a) C=wh+Y h=H-L where C is consumption L is hours of leisure, w is hourly wage, h is hours of work, Y is non labor income, H is total time split between leisure and work A what is the ...
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How to simulate labour market policy dynamics in a search-matching model?

As the title asks, I am wondering what approach one would take to simulate a labour market within a search and matching framework. Say I have an extension of the DMP model and that I want to simulate ...
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how could productvity be measured in oil sector?

the activity in an oil company is composed of 3 parts administrative laboratories (geological search) concessions( workover,drilling) How could productivity of workers be measured in this case ? ...
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1answer
46 views

why unit price evolution change with currency? [on hold]

i have the following data purchase value of the year (n)= 300 ; units purchased = 40 and course euro dollars=1,6 purchase value of the year (n+1)= 320 ; units purchased = 42 and course euro dollars=...
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1answer
54 views

Hours worked increases with wage

So I have been given a utility function = $ 48 R + Ry -R^2$ where $R$ represents leisure hours and $y$ represents labour income. $y=rl$, $r$ is wage rate and $l$ is labour hours. Find hours worked ...
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How can the number of hairdressers in the UK be up 50% since 2010?

In this recent article, The Economist argues that one of the reasons behind the anaemic recent wage growth in Britain is that the recent job growth has been concentrated in lower-productivity jobs and ...
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2answers
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How do Marxists account for fiat money?

LTV predicts that fiat currency, which requires zero labor to produce, should have zero value. Empirically, fiat currency does not have zero value. How do Marxists account for this. The to responses I ...
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2answers
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Empirical explanation on divergence between productivity and wages since the 70s

There is a well know graph, that shows a tight link between productivity and wages, until the 70s, and a break of the link since: There's a lot of possible explanations for this, I keep hearing more ...
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Help me solve this?

Suppose the market for railing is competitive. The demand function is given by Q=120-2P, FVF projecting is active in the market and faces a cost function C(Q)=200+2Q+0,5Q^2. a) What is the optimal ...
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Does it make economic sense for only some universities in a certain area to pay their sports scholars?

Apparently ‘Athletic scholarships are common in the United States, but in many countries they are rare or non-existent.’ But are there countries where there are some universities that offer sports ...
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labor share and growth

Is there a link between the level of the labor share and growth? In standard models growth is the rate of (labor augmenting) technical progress and labor force. So does that mean if the labor share ...
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Neo-Classical or Neo-Institutionalist Labor Economists?

How would you classify labor economists as neo-classical or neo-institutionalist? I have just begun reading Boyer and Smith (2001) and the authors emphasize the role that institutionalist have played ...
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19 views

Dissertations and Advisers of well established economists?

I am researching on labor economists like Francine D. Blau, graduated from Harvard University PhD. Econ 1975. I am trying to find her dissertation and her doctoral advisers to understand the school of ...
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Has any research found that automation will decrease inequality?

A paper by IMF researchers (but not an official position of the IMF) has found that automation will lead to higher inequality under all scenarios they considered. Even in the scenario where robots ...
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Estimating the labor force responsible for a percent of GDP growth

I am looking to estimate the employed labor force responsible for 67% GDP world GDP growth. According to this Brookings report, the 300 largest metros in the world accounted for 67% of GDP growth. I ...
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1answer
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Articles about the economics of non-compete contracts

Today I read in a non-scientific article that Amazon requires some physical workers to sign non-compete agreements. I used to think that the idea behind allowing non-compete clauses in contracts is to ...
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1answer
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Unemployment Rate Volatility

Is there a statistic that describes the “churn” in the unemployment rate i.e. how many became unemployed compared to how many found work? I’ve heard of unemployment volatility (https://www....
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How would the innovation curve and market design change because of AI generated/ assisted IP

How would the IP market change if AI generated/ assisted IP (Patents) are allowed. As of now, Copyrights do not permit non-human authorship and Patent law is silent about such cases. I want to ...
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1answer
50 views

Burdett and Mortensen (1998), Equation (22), Integral by parts question

Suppose $F(x)$ and $H(x)$ are both cumulative prob dist functions on the support of $[b_0,b_1]$ and we know followings: $$u(x|F)=\int_{b_0}^{x}\frac{m}{1+k[1-F(b)]} dH(b)$$ and from this $$[1+k(1-...
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What is a good employment projection number? (bls.gov)

I can't seem to find an answer via google. How do I use bls.gov's employment projection numbers to find a degree or a career worth pursuing? Mechanical Engineering is projected to have 25,000 jobs ...
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33 views

Profit maximizing by monopsonist facing separate labour supply schedules for males and females

Suppose a firm is a monopsonist in the labor market and faces separate labor supply functions for males and female workers. The labor supply function for male workers is given by: $L_m$= $w_m^k$ ...
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5answers
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Lack of skilled IT workforce, but they do not raise wages

In my country, Portugal, many IT companies are always complaining in media regarding the lack of skilled IT workforce, but they do not raise wages. We have statistical data from the government that ...
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2answers
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Ad-driven skills gap?

In a Business Insider piece I read that: Michael Madowitz, an economist at the Center for American Progress, says he is "unusually unsympathetic to the evergreen skills gap critique." "First ...
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1answer
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Does labor mobility create a certain type of market failure?

Oxford professor Ewart Keep writes in a paper titled Market Failure in Skills (p. 3) that For firms there is the problem of investment in staff who may leave taking their skills with them. ...
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1answer
66 views

Labour Market: simple macroeconomic modeling

I just started reviewing macroeconomic modeling for an upcoming entry exam, and I'm not sure about my answers in this application: Suppose that the economy of a country has a representative firm ...
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19 views

Why doesn't the concept of employee engagement work in practice? [closed]

The concept of employee engagement looks like an overwhelming obvious way of improving business performance, yet since the mid-nineties, and after spending billions on engagement improvement systems, ...
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1answer
66 views

Expectation augmented Phillips Curve

Currently studying Intro to Macroeconomics, and faced Expectations augmented PC. In my textbook it is not clear how expected inflation affects unemployment. My view so far, is that expected inflation ...
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1answer
21 views

Does a fall in the wage rate always reduce hours worked?

In the Neoclassical Labor-Leisure model, does a fall in the wage rate always reduce hours worked? Or does it depend on whether the substitution or income effect dominates?
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1answer
64 views

Profit maximization question

Two firms are in a market together. They produce a product. Total revenue from sales is $y=K+L$ K is the amount of capital L is the amount of labor These two firms each specialized in supplying ...
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40 views

How to find a new instrumental variable

I want to replicate the econometrics analysis from the paper by Autor, Dorn and Hanson (2013): The China Syndrome: Local Labor Market Effects of Import Competition in the United States http://...
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2answers
107 views

How did we arrive to 40 hr work week?

I am interested in a (reasonably) quantified explanation of why the work week in most of the world is 40 hrs and not for example 20? How did we arrive to the number 40. Another question is, and here ...
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2answers
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How to set a minimum wage

How does a country set an optimum minimum wage, i have went through loads of website but none of them give me a satisfied answer. For example, median of a country's income, percentage of GDP and such ...
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1answer
59 views

How is it economically responsible to destroy proprty which has value? [closed]

precursor: bitcoin.stackexchange.com/q/1851 How can it be economically responsible to destroy property which has value? If a property is destroyed (which is the right of the property holder in most ...
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1answer
34 views

Economic impacts of Migration on the Labour Market

Many natives don't prefer foreigners taking their jobs, is it actually a bad thing for the countries economy?
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1answer
49 views

Real Business Cycle Theory

Which academic paper does this diagram come from? Need to know for citation purposes. Apparently its King and Rebelo (2005) but doesn't seem to be the case.
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1answer
32 views

Incomes of different professions [duplicate]

Doctors average salary is around \$110,000 a year, whereas NBA stars salary may well cross \$5,000,000 a season. Why do sports players and television stars make more than doctors and politicians?
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113 views

What did Adam Smith mean by skill, dexterity and judgement?

Aspiring economist major here and I began reading Smith's "Wealth of Nations" today and, even a few pages in, do not completely understand the difference between the three due to the rather opaque ...
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1answer
18 views

Productivity issue

Could someone help with the following? Company produces products of daily demand. It employs workers In number of 12 people (HER) Wages of workers. The costs of hiring and firing are 25 per employee, ...
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2answers
52 views

Productivity and wages in a task-based model

In a task-based model like the one developed in Acemoglu&Autor 2011 with two types of worker, can the low type have a higher wage with respect to the high type? More specifically: if the ...
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1answer
122 views

The Shapiro-Stiglitz model. Why under full employment do unemployed workers find jobs instantly?

Under the Shapiro-Stiglitz model the No-Shirking Condition is: $$w=\bar{e}+\left( \rho +\frac{\bar{L}}{\bar{L}-NL}b \right)\frac{\bar{e}}{q}$$ Where: $\bar{e}=$ exerted effort by employees $\rho=$ ...
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34 views

Meaning of Decline in Job Vacancies

Tightening Labour Market: This means that unemployment is falling and there are few job vacancies available. The decline in job vacancies tends to push up wages as firms find it more difficult to ...
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2answers
284 views

Interest rate Effects on labour supply

I was analysing, free of specificities, the effects of an increase in the real interest rate on labour supply in a two period setting. The obvious effect on leisure is the intertemporal substitution ...
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2answers
68 views

JK Galbraith Quote: How to interpret?

I came across a very thought-provoking quote by JK Galbraith concerning supply-side economics. The quote is as follows: The poor don't work because they have too much money. The rich don't work ...
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How does increase in repo rate arrest inflation? How does price of goods come down?

When the repo rate is increased, how does it reduce demand? What happens to supply on reduction in demand? Why can't the people spend the money, even when(suppose) they have no transaction with banks?
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2answers
66 views

A confusion regarding search and matching model in Pissarides's “Equilibrium Unemployment Theory” book

I was studying chapter 1 of the book "Equilibrium Unemployment Theory" and I got confused about the way Pissarides has defined the probability of a firm not finding a worker in a short time interval $...
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What do we know about international labour mobility and poverty reduction in the participating countries?

Does existing research show, for example, that if A & B relax labour mobility norms, poverty in both these countries reduces? Do note that I'm not talking about domestic labour mobility.
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How to find right MRP_L in this economic problem?

Economic problem from my textbook (here is my translation from Russian): There is a firm that is both monopoly and monopsony. It's monopoly on market of its product and it's monopsony on labor market ...
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189 views

Pooling equilibrium $\implies$ pooling equilibrium > separating equilibrium?

Consider a signalling game with two types of players choosing a level of education for the sake of job-market signalling. There are two types, high ($H$) and low ($L$). Wages are $R$: $W_H=12, W_L=6$. ...