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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Aggregate Supply derived from Wage Setting and Price setting equations

In Blanchard's Macroeconomics textbook, Aggregate Supply relation is derived from wage setting and price setting equations as such: $P = (1+m) W = (1+m)P^e F(u,z)$, which implies that an increase in ...
festakonik's user avatar
4 votes
3 answers
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What kind of utility function is needed to derive a "Backwards Bending Labor Supply Curve"

The idea of a backwards bending labor supply curve is often discussed in many introductory labor economics classes where a consumer's labor leisure decision at higher wages (due to a diminishing ...
EconJohn's user avatar
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Data on average annual hours worked by persons engaged

In Penn World Table 10.0 (source: https://www.rug.nl/ggdc/productivity/pwt/pwt-releases/pwt100), the avh (average annual hours worked by persons engaged) figures are missing for many countries. Where ...
farruhota's user avatar
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What exactly is an exogenous stationary distribution?

All jobs are identical except for their wages, and wages are given by an exogenous stationary distribution of $F (w )$ with finite (bounded) support $\mathbb W$. This is from page 6 of https://ocw....
Maadhav's user avatar
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How to get the function that shows the relationship between wage and labor supplied

In the purchase-leisure trade-off curve, we get the relationship between wage and working hours. But how can we get the relationship between wage and quantity of labor supplied? The demand curve is ...
Luming's user avatar
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Help solve a problem about the leisure demand/labor supply mode. Halfway solved but fear my solution can't be right?

I've attached the question along with my current (incomplete) solution, but am unsure if my solution to part b makes sense given the question in part c. No substitution effect if demand for leisure is ...
Lily Rademacher's user avatar
1 vote
0 answers
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Help solve a problem about the leisure demand/labor supply mode. Halfway solved but fear my solution can't be right?

I've attached the question along with my current (incomplete) solution, but am unsure if my solution to part b makes sense given the question in part c. No substitution effect if demand for leisure is ...
Lily Rademacher's user avatar
1 vote
0 answers
33 views

How to find hourly wage when data only provide range?

I am trying to separate observations into two groups, people who earn below (treatment group) and above (control group) the minimum wage to perform a difference-in-differences. The data I'm using have ...
asdf's user avatar
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What is the mainstream economic response/interpretation of double burden, or the problem with unwaged reproductive labor?

I have recently done some readings into unwaged reproductive labor (the labor done in the household, primarily by women, which facilitates the household), and the arguments provided support the idea ...
22333444455555556668888's user avatar
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2 answers
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Isn't population decline and ageification of Japan, a good thing?

So hear me out, Essentially my argument is 2 pronged: Automation is shrinking the demand for blue-collar jobs, so a shrinking population is a good thing, since it means lesser competition but not ...
Leibniz's Alien's user avatar
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Toy model equilibrium calculation: How a small system's firm determines wage and price?

I am trying to model a small system, with limited population and a single firm. Personally I have no economic background but only taken a simple microeconomics course and I am quite interested in ...
DongAlpha's user avatar
3 votes
1 answer
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Ask about the HLT method of "Life cycle wage growth across countries"

paper :https://www.journals.uchicago.edu/doi/epdf/10.1086/696225 deaton imposes linear constraints in order to deal with the collinearity of age-period-cohort. How to implement it through stata? Why ...
Barry Alen's user avatar
3 votes
3 answers
174 views

measuring the effect of attending a private school on the return to education

In my research methods course project, I'm investigating the impact of attending a private school during primary and secondary education on future wages, utilizing cross-sectional data. I've ...
baker M's user avatar
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Are illegal immigrants a net benefit to the economy?

I'm talking specifically about the U.S. Currently, there is a migrant crisis and the "sanctuary cities" are facing a budget crisis in the near future because of the influx of migrants. I ...
Aqua Neon's user avatar
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Are there some estimates of average working hours in Medieval England?

I am looking for data or estimates on how many hours per day (or week, month, or even year) people used to work on average in Medieval England. Since, in the past, people mostly produced what they ...
Ezekiel's user avatar
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Why Is Having a Strong Manufacturing Base Important to a Country's Economy?

I was living in Pittsburgh in my teens and twenties during the collapse of the steel industry and remember how profoundly it impacted Pittsburgh. Some say that due to the large percentage of the ...
Tikhon's user avatar
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For my bachelors, would it make sense to use C+G (as Consumption + Government Expenditure) as an indicator for the prosperity of the economy?

Because G is also really just consumed by the people, wouldn´t it make sense to measure all the things that people consume to measure the prosperity of an economy? At the end of the day, people in an ...
Matsvei Voltau's user avatar
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Modelling the optimal mix of labour

I am trying to model the profit maximization decision of a firm that uses two types of labor, workers A and workers B. I started by drawing the marginal product and marginal cost curves (lines, for ...
Mikhail's user avatar
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1 answer
32 views

Stable Outcomes and Matching Models for the Labor Market

I am reading a paper that discusses mathcing of workers to firms in the labor market (see the excerpt below). Here an outcome $(\mu,\pi,w)$ consists of a matching function pairing workers to firms, a ...
AYC's user avatar
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Why do shareholders allow CEOs and other executives to have extraordinarily high salaries compared to regular managers and non-managerial employees?

The wage gap between CEOs and employees varies from country to country. A 2021 article from CNBC discussed how CEOs in the US on average earned 351 times more than the average US employee. The ...
Jude Zambarakji's user avatar
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1 answer
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Looking for any research/theory on "shadow work"

Not in the Jungian sense, but rather the hidden costs of distributed labor. For example, let's say a large company licenses expense management software for employees to scan and record their own ...
Peter Lewis's user avatar
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1 answer
20 views

How do labor literature measure productivity of the worker?

When a firm hires a worker, they have incomplete information on the workers' productivity. Firm's goal is to hire the most productive workers, and they estimate productivity of the workers given the ...
Hosea's user avatar
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Is there a labor vs leisure model with work experience?

I find the labor-leisure model with utility functions interesting, but I find it lacks the factor of work experience, which is very important in the real life labor market. This is a reason people why ...
Nicolas Torres's user avatar
2 votes
2 answers
77 views

labor leisure model, quasilinear preferences

There is a quasilinear utility function $u= (1-t)wl - p(l)$, where $l$ is labor supply. I don't quite understand what happens, if the budget changes (due to $w$ or $t$) since it is quasilinear. Does ...
tk420's user avatar
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1 answer
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Taxation and Labour Supply in the short-term

Can someone help me to explain this graph and who has tax incidence more?? In which, the vertical axis means wage per hour and the horizontal axis means the number of labor hours supplied per year. ...
Huy Lê Thanh's user avatar
4 votes
1 answer
875 views

What is meant by "marginal disutility of labor" in Keynes General Theory

Sorry for the newby question, started reading Keynes general theory (1936) and am confused by this paragraph in Chapter 2: The traditional theory maintains, in short, that the wage bargains between ...
psychomantis01's user avatar
2 votes
2 answers
55 views

Minimum wages in France

Does somebody know where I can find historical data on minimum wages in France for different worker groups?
Papayapap's user avatar
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30 views

wage dynamic in search and matching model

I would like to know if we can track agents' behavior in the model with search and matching framework. Then we can know the wage dynamic of the agents. Thank you.
X. Sze's user avatar
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The correct classification of system costs: maintenance, excess consumption, necessary consumption, development?

Yesterday I saw in one of the videos on YouTube a classification of the expenses of the system consisting of: maintaining the system necessary consumption excess consumption development Please tell ...
Mr. LOLO's user avatar
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Are There Studies Estimating the Prevalence of 'Bullshit Jobs' Across Countries?

Have there been any studies conducted to estimate the proportion of 'Bullshit Jobs,' as defined by David Graeber, across different countries? Are there any known efforts to visualize this data in a ...
Pavel Kocourek's user avatar
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1 answer
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How Does Economics Address Society's Major Existential Threats?

Given our societal emphasis on the pace of 'progress', often overlooking its direction, we face a multitude of existential challenges [1]. These range from the looming threat of nuclear warfare and ...
Pavel Kocourek's user avatar
1 vote
0 answers
19 views

Where's the current research at the intersection of labor market and macroeconomics?

I am into monetary economics and DSGE modeling, so I'm not very up-to-date when it comes to research on labor markets. Can anyone give me an overview of the current research trends on labor markets (...
erised's user avatar
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3 votes
2 answers
189 views

Utility maximization for a household consisting of a woman and a man, with gender discrimination

Consider a household consisting of a woman and a man, with preferences over leisure and consumption given by: $U(\overrightarrow{c},\overrightarrow{l}) = \ln{c} + \ln{l^F} + \ln{l^M}$ where $\...
Nicolas Torres's user avatar
3 votes
2 answers
190 views

Strikes: why so often?

It is clear that the possibility to go on strike is an effective power asset for employees. However, it is also clear that every strike that is carried out is a lose-lose: the employer loses money ...
leftaroundabout's user avatar
3 votes
0 answers
44 views

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 ...
Student's user avatar
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3 votes
1 answer
71 views

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:
josephjones1472's user avatar
1 vote
0 answers
27 views

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 ...
Kevin Kostlan's user avatar
1 vote
2 answers
134 views

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 ...
Jared Greathouse's user avatar
2 votes
0 answers
16 views

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 ...
user43188's user avatar
1 vote
1 answer
112 views

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 ...
Tenetet's user avatar
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4 votes
1 answer
85 views

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 ...
quanty's user avatar
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-1 votes
1 answer
90 views

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 ...
user avatar
3 votes
1 answer
476 views

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. ...
Ishan Kashyap Hazarika's user avatar
3 votes
0 answers
71 views

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 ...
Lassie Fair's user avatar
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1 vote
2 answers
366 views

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? ...
Rainroad's user avatar
  • 243
1 vote
1 answer
51 views

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 ...
Ronald J. Zallman's user avatar
-1 votes
1 answer
40 views

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"" ...
student's user avatar
  • 65
2 votes
1 answer
143 views

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 ...
student's user avatar
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1 vote
2 answers
84 views

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!
student's user avatar
  • 65
0 votes
1 answer
279 views

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.
student's user avatar
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