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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Dispersion of housing prices in Hsieh And Moretti (2018)
I have been reading 'Housing Constraints and Spatial Misallocation', by Moretti and Hsieh, AEJ Macro 2018, https://www.aeaweb.org/articles?id=10.1257/mac.20170388
In their equation (7), they derive a ...
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Universal Basic Income (UBI) policy proposals optimal hours worked and consumption
can someone please help me check my work for this question? I want to make sure I did it correctly.
Question:
Work:
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Is the porportion of manual labor increasing?
Broadly speaking, manual labor is producing a physical good or service. A plumber cannot write an algorithm to fix clogged pipes and sell it to desperate homeowners. Manual labor varies widely in ...
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Derivation of Labor Function
I want to know if I'm taking the right steps to derive a labor equation from a utility function. Suppose $U(x,L)=x^{0.5}+l^{0.5}$ where $L$ is labor, $x$ is our one good of interest, and $l$ is ...
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How to derive (mathematically and intuitively) the relationship between expected price level and natural rate of employment?
We know that
$ W = \mathbb{E}(P)f(u, z) $
, so that nominal wage $ W / P = (\mathbb{E}(P) / P)f(u, z) $
From Blanchard.
Furthermore,
$ W / P = 1/(1+m) $ (where m is defined as the markup on wages to ...
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Income and Substition Effect: Assumptions: Normality vs. Inferiority of Goods
A question concerning the income and substitution effect when the wage changes
Let us assume that the substitution effect leads to more less leisure as the relative price of leasure increases, and ...
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Are people less likely to apply to jobs in which they will be a minority?
Hypothesis: People are less likely to apply for a job in which they will be under-represented relative to the wider population. More technically, the distribution of job applicants is the same as, or ...
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Can you explain the poisiton of gk and c? How can c be higher than the w? c=consumption/worker,gk=growth of capital stock,x =output/worker, v=profit
Why are gk and c located where they are on this production schedule graph? How can consumption per worker be higher than the wage rate?
Can you explain the position of c and gk in this production ...
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Do freeloaders have a detrimental impact on an economic system?
As far as I can tell, proponents of different systems of governance and taxation agree that freeloading is bad, even if they disagree on where the lines are (or ought to be) drawn. I'm not sure I ...
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How is potential experience usually measured in the Mincer equation?
Wikipedia specifies the Mincer equation like this:
$$\ln w = \ln w_0 + \rho s + \beta_1 x + \beta_2 x^2$$
and states that $w$ is wage, $s$ is years of schooling and $x$ is potential experience.
...
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How can there be a "lack" of workers? The Vanishing American Worker
I don't understand the current economic situation. The savings rate is at a long-time low. Something like 30% of Americans failed to pay mortgage or rent in June, inflation is signficantly increasing ...
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What should I gain out of second year classes?
I'm in my second year. Most of my classes are just introduction to a bunch of papers and models. I'm not sure what I should be gaining out of these papers. What are the skills I should be picking up?
...
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ISCO08 - ISCO88 correspondence table
Where can I find a good isco08-isco88 correspondence table? I can't download it from the ILO website
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Finding data on high paying jobs
This is a pretty beginner question. My background is in pure mathematics, and I know statistics and R, but no economics.
It might be a bit much tagging this as a data request question since I'm trying ...
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Why does the government spending increase by the "same" amount as the demand?
I know that governments can increase demand by increasing employment, transfer payments, and capital for the private sector.
Why does government spending increase by the ""same"" ...
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Why doesn't the consumption function include savings?
Why doesn't the consumption function C=C(Y-T) include transfer payments?
If we assume that C=MPC(Y-T), and that the MPC assumes that one part of the increase of income goes to savings. But what about ...
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Why is the 'marginal productivity of a factor' of any relevance in the Cobb-Douglas production function?
I don't understand its importance in this production function.
I know that the productivity parameter is A in the function:
F(K;L)=AK^α L^(1-α)
So what could it be?
Thank you!
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In the Cobb-Douglas production function, why do K and L have these effects?
Why does an increase in K lead to an increase of MPL, and to a decrease of MPK?
Likewise, why does an increase in L lead to a decrease of MPL, and to an increase of MPK?
Thank you.
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Why is a donation of cash preferred over an equivalent donation of labor?
Suppose you went down to your local animal shelter or homeless shelter and asked:
I would be happy to volunteer 10 hours every weekend. I will perform general-purpose labor, meaning I will do any ...
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Why is it Y=F(K,L), and not Y=F(K,L, Economic profit)?
Initially, we have the distribution of income:
Y = MPLxL + MPLxK.
But, when the economic profit = 0, we have constant returns to scale. And since, input=output, if I am not mistaken, there is just ...
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Is labour considered normal by someone whose utility function is $u = cl$?
If $l$ is hours of leisure and $c$ is the consumption units, can we show that leisure is a normal good for someone whose utility function is $u = lc$?
If $w$ denotes wage per hour, $i$ denotes the non-...
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What is "the marginal cost of the work performed"?
A section in my (mostly conventional) transport economics (Blauwens, De Baere, Van de Voorde, 2002) handbook discusses the use of transport policy to generate employment (as a second-best solution: ...
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Imputed Mexican share instrument
I am trying the construct the imputed Mexican share instrument from the paper "Task Specialization, Immigration and Wages by Peri and Sparber" and hoping if anyone could confirm whether I am ...
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What does the freelance/independent contractor vs. employee salary difference look like for different countries?
Is there any data someone could point me to that would help answer this question?
Individual data points would also be helpful, e.g. on the ratio of wage to freelance hourly pay for software engineers ...
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How to estimate $\gamma$ in the following model?
Suppose I have the following model:
$Q=1(x'\beta+e>0)$,
$D=1(x'\alpha+\gamma Q+u>0)$
and I want to estimate $\gamma$, the error terms $e,u$ are jointly normal.
If $e$ and $u$ are correlated, can ...
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the future effects of Covid 19 pandemics on GINI (income inequality)
I would like to analyze the future effect of Covid 19 pandemics on the Gini index (income inequality).
Which dependent variables should I use in order to see the effect of the pandemics?
For example, ...
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Solve Joint Distribution From An Equation
In Postel-Vinay & Robin 2002 they show an equation: $$\left\{\delta+\mu+\lambda_{1} \bar{F}(p)\right\} \ell(\varepsilon, p)=\left\{(\delta+\mu) h(\varepsilon)+\lambda_{1} \int_{p_{\min }}^{p} \ell(...
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Marxist Labor Theory of Value Become Obsolete?
Has the Marxist Labor Theory of Value Become Obsolete? Is it currently used for anything? Marx does not specify labor value, I believe he only uses the argument of surplus value according to the labor ...
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Evidence of the Efficiency of Competitive Search Equilibrium
Econ theoretical literature suggests that competitive search equilibrium can arise efficiency allocation by internalizing the congestion externalities. A typical example is that the Hosios condition ...
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The correct way for log wage and long difference of wage
Good afternoon, I'm starting to study econometrics and I have a doubt:
I want to study the relationship between ICT exposure and changes in wages over the period of 2003 to 2021
$$\Delta y_{o} =\...
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What (and how) to control for in adjusted wage-gap regressions?
Background: The unconditional wage gap between some group and the rest is often estimated using a regression of the form
$$
w_{it} = \alpha + g_{it}'\theta +\epsilon_{it}
$$
where $w_{it}$ is log of ...
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Calculation of labor, capital and productivity deviation
In Ohanian (2010): The Economic Crisis from a Neoclassical Perspective ( https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.24.4.45 ) I read about labor, capital and productivity deviation. I would like ...
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Diff-in-diff treatment problem
I have a cuestion about a possible aplication of a diff in diff in labor economics.
I'm thinking for my master's thesis of comparing the effects of a reduction of the payroll tax in Argentina, which ...
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Labor economics / econometric survey on employee satisfaction surveys
I'm a neophyte to the domain, so I would like to learn from survey-type resources that focus on labor economic / econometric analyses of "employee satisfaction surveys."
Quotations for "...
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Labor=1 in standard growth model
In every standard growth model, we suppose labor=1.
I learnd that this is because optimization solution of labor is equal to 1.
How to derive that optimazation solution?
For example, consider that ...
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Stock-Wise Option Value model
Is there any programming application or algorithm to compute Stock-Wise (1990) Option Value model?
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Measures on the composition of the unemployed by educational attainment in the US
I am trying to find statistics on the profile of unemployed individuals in the U.S. categorized by educational attainment. I have found statistics on the unemployment rate for each education group (e....
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Did online learning affect the returns to education?
I am interested to know if online learning during the pandemic affected the returns to university education. Anecdotally, education quality suffered from online learning, I wonder if this harmed ...
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Competitive equilibrium for an economy with a consumer and a producer
A representative agent’s preference over consumption $(c)$ and labour supply $(l)$ is given by the utility function $$ u(c_D, l_S)= c_D^a .(24-l_S)^{1-a}$$
Production of the consumption good $c$ is ...
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labor supply model
Consider a concave utility function $u(c, l)$ where $c$ represents consumption good and $l$
represents labour supply (working hours, to be precise). While utility increases as level of consumption ...
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Why did Heckman sample selection models fall out of fashion?
Nowadays most people run wage regressions conditional on being employed rather than using Heckman selection models. So what are its drawbacks and why did this approach fall out of fashion?
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Is there a long-run tradeoff between inflation and unemployment?
In most first-year undergrad macroeconomics courses, students are taught about the Phillips curve and how whilst there may exist a tradeoff between inflation and unemployment in the short-run, there ...
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Changes in TFP and wage rates across firms
Assume that you have two firms, firm A and firm B. Firm A faces the
production function:
$$
Y_{A}=A_{A}F\left(K_{A},L_{A}\right)
$$
and firm B faces:
$$
Y_{B}=A_{B}F\left(K_{B},L_{B}\right)
$$
Factors ...
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Combining 990 and 990-EZ Data
I've collected 990 and 990-EZ data from the IRS's Annual Extract of Tax-Exempt Organization Financial Data on American Federation of Musicians locals. The data are split about half and half between ...
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Derive Value Functions in Job Search Model
I am reading a paper using the common job search framework, which has functions $\begin{aligned}
&V_{r}\left(e_{r}\right)=w_{r}-e_{r}+\beta\left(q V_{u}+(1-q) V_{r}\left(e_{r}\right)\right) \\
&...
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What value does a worker whose job could be automated provide to society?
Has anyone calculated the global benefit of non-workers on government assistance and found their contribution to be less than the assistance they were provided? I'm looking for scientific studies ...
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Job Market Signaling w/Continuous Ability
I am currently trying to brush up on job signaling models for the upcoming semester, and came across this old exam question. There are no solutions to the question (that I am aware of), and I'm having ...
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Insights from Labor Demand Research
A few years ago during my PhD, I remember listening to a provocative keynote talk at a conference by Francis Kramarz who criticized the progress in labor demand research. He summarizes his opinion in ...
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Comparative statics when price of an input increases
Let us assume a very basic model of profit maximization of firms,
wherein their output depends on labour and capital:
$$
Y=f\left(K,L\right)=K^{\alpha}L^{1-\alpha}
$$
Their aim is to maximize profits,
...
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Salop (1979) model for labor markets
Can the Salop (1979) model also be applied to labor markets or is there any reason why it should not be?
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