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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339 views

Local and Central Wage Bargaining: What Is the Difference?

Consider the following setting: Profit maximizing firms with production functions $\Pi(w,L)$, where $w$ is the wage and $L$ is employment. Unions who want to maximize the expected utility of their ...
6
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1answer
263 views

Labour markets and supply-side policies: too much stress put on the WS push factors?

In reading several macro textbooks, it seems that most of the supply-side policies tend to be focused on the labour supply side (wage setting curve), instead on the firm/labour demand side(price ...
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0answers
101 views

Why aren't there more super-stars in educational content delivery?

The super-star phenomena seems to happen in any field where the marginal cost of distribution is very low. I think teaching could be that way just as much as acting or playing basketball - at least as ...
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186 views

Consumption-Leisure Elasticity

The macro-literature insists on a consumption-leisure elasticity of 0 to match the balanced growth fact of constant labor supply. Is there any paper that tries to evaluate this elasticity using ...
5
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1answer
114 views

Why is sugar cane still harvested manually in Brazil?

I read that up to 70% of Brazil's sugar cane in the Sao Paulo area is still harvested manually. Some workers are paid $1.50 per tonne. Why is it still being cut manually? Some possibilities: (1) farm ...
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0answers
57 views

Estimating Job Vacancy rate empirically

I'm currently reading up on matching models in terms of their ability to describe frictional unemployment, they generally follow a cobb-douglas form. $$M(u,v)=m=\mu u^\alpha v^{1-\alpha}$$ Where $M(...
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0answers
29 views

Estimates of the global STEM workforce?

I am looking for any recent estimates of the global STEM workforce (STEM = Science Technology Engineering Mathematics, and ideally includes software engineers). Time series data would be even better, ...
4
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0answers
4k views

Difference between embodied and commanded labor in the Labor Theory of Value?

Could the difference between "labor embodied" (production cost in labor value) and "labor commanded" (selling price in labor value) as described in the labor theory of value be attributable to the ...
4
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3answers
626 views

Is the labor force participation rate related more to labour supply or to labour demand? Or both?

I have read several Labor Economics books, but I am stuck. Is the labor force participation rate related more to the labour supply or to the labour demand? If the labor force participation rate ...
3
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0answers
25 views

Average ability conditioning on having accepted an offer

There is a continuum of workers between 0 and 1. These have ability $\alpha\sim U[0,2]$. A firm offers them a salary $v$ and has profits $$ \pi = (\rho \alpha-v) n(v) $$ where $n(v)$ is the fraction ...
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0answers
15 views

Are there any net benefits in reducing/increasing tourist-oriented retail business?

Hong Kong is currently experiencing a slump in foreign tourist-oriented retail sales. Shops selling jewellery, watches, infant formula or Chinese medicine experienced a 25-35% decline YoY in August. ...
3
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37 views

Asymmetric Nash Bargaining

The Nash bargaining solution selects the unique solution to the maximization problem $\max_{s_1, s_2 } (s_1 - d_1) (s_2 - d_2)$ such that the solution satisfy the following axioms : Invariance ...
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117 views

Causes of upward trend in median first marriage age in USA?

I found a chart here of median age at first marriage by year from 1890 to 2010. It looks like it dips to a low during the 60s then has an upward trend until 2010. As an answer, I'm looking for any ...
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43 views

What models exist that explain which people emigrate to another country?

I'm looking for papers about this, or if there's a pretty standard model across many papers, then maybe just a rundown of the model. I'd like to use the model in an econometric analysis. For example, ...
3
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0answers
146 views

Job-finding rate in an urn-ball model with types

Setup Say you have two types of workers, high and low. The share of low-types among the unemployed population is $P$. I want to find the job-finding rate for these types. Matching Matching is ...
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25 views

Reason for SMEs in the European Union employing the bulk of people?

Is there any specific reason why SMEs in the European Union employ the vast majority of people in general as well as in certain industries? Are they exempt from certain regulatory burdens such as ...
2
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1answer
60 views

How to test if the effect of one regressor entirely comes from other regressors?

I have a regression model that includes IQ test scores as the dependent variable; my own education, my father's education and my mother's education as independent variables. Suppose I want to know ...
2
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0answers
62 views

Why are there no minimum wage entry level IT jobs

In the UK, I have not seen any graduate level IT jobs offering a starting salary below £20,000. At the same time, about 10% of computer science graduates are unemployed six months after graduation. ...
2
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0answers
46 views

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 ...
2
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0answers
46 views

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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0answers
46 views

How many of the world's workers are producing luxury vs necessary goods?

Has there been any scholarship done on the proportion of producers producing high-end vs low-end goods? This could also be framed as the proportion of economic activity generated by wealth excess of a ...
2
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5answers
673 views

In GDP growth studies, are factors of production measured as stock or flows?

Consider the following cases: One machine (capital) is used by multiple producers within one year. For instance, farmers renting tractors from the same company. In this case, in terms of GDP, there ...
2
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0answers
18 views

References for estimating lifetime earnings lost due to caregiving (health economics)

I am working on a project on the productivity costs for caregivers of people with Disease X, a degenerative disease that affects mobility over time. I am looking for references, either scholarly ...
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0answers
12 views

Why is three weeks of increasing jobless claims significant?

I see stories like this one on occasion in my news feed. http://www.bloomberg.com/news/articles/2016-10-27/jobless-claims-in-u-s-decline-for-first-time-in-three-weeks Mainstream news outlets never ...
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0answers
29 views

How to overcome measurement error in variable for immigration year?

I'm using the Current Population Survey and studying immigration. There's a variable: Year of Entry into the United States for the Foreign Born. The survey is administered to a representative sample ...
2
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0answers
41 views

Negative Interest Rates - Supply-Side Policy

(This is 3rd Part of a series questions under "Negative Interest Rates") Motivation: I've happen to stumble on two articles, with some weeks, that the central bank(CB) of switzerland, due to Russia ...
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0answers
58 views

Is America economy, Connecitcut's economy, and the global in general recovering and better than the year 2008?

Please answer all three if you can. I live in Connecticut, America, and of course global trade and economies matter as we are becoming more global from technology. December 2007 the markets ...
2
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0answers
125 views

How does Austrian Economics define Labour Productivity?

Is there a specific Austrian definition in accordance to the concept of Labour Productivity? If Labour Productivity is too broad of a term, then I will qualify to be speaking about it in context of ...
2
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0answers
187 views

Hot Topics in Labor-Macro

I'm interested in currently hot research topics within Labor Macro. I'm only aware of the debate on the recent shift in the US Beveridge curve, and, of course, the olden but golden Shimer puzzle. ...
2
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0answers
49 views

Separation shock and business cycles

In the context of the Diamonds-Mortensen-Pissarides models, there was a reasoning why a separation shock cannot fit business cycles. I think it was brought forward by Shimer, but I could be wrong. ...
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0answers
29 views

Consumption of the unemployed

I am wondering how the consumption of the unemployed varies over the business cycle. We know that wages of people getting fired in busts are higher than wages of people in booms (Mueller 2012), so ...
2
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1answer
89 views

Does brain drain really affect a nation's growth trajectory?

Take India as an example. India has been losing most of its bright minds to the west. India also ranks low in development. I would like to get a definitive answer to this cause-effect type question. ...
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0answers
14 views

What quasi-experimental/econometric technique can I use to measure the impact of a policy using longtitudinal tax data?

I have two cohorts of workers with very similar characteristics (e.g. same demographic profile, skill level, industry) that were laid off at different points in time. Say one group was laid off ...
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0answers
46 views

How can I obtain monthly unemployment by ethnicity by state for the US?

Grateful for any help, thoughts and direction.
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0answers
35 views

Are there any estimates for what percentage of the jobs lost this spring are “permanent” at least for the rest of the year?

In a "view from the helicopter" video by The Economist on the aftereffects of Covid-19, one of the editors says that it's very unlikely we'll see a return to normal this year e.g. in the restaurant ...
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0answers
6 views

Implications for Labour after a Productivity Shock, RBC Model

I am trying to understand the implication for labour after a one time productivity shock where $A_t$ follows a AR (1) process with persistence $\rho_A=0.95$. It is stated the following : labour ...
1
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1answer
23 views

Understanding distortions in investment in human capital

I am currently reading Economics of The Colour Bar by WH Hutt, and I'm having trouble understanding this bit he has written: “But when the price of any commodity is raised above the free market level, ...
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0answers
13 views

Using small area estimation to help measure wage estimates for cohorts (labor quality measure)

I am looking for research or information on uses of small area estimation for economic data. Are there any good resources that are available?
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0answers
16 views

One Treated Unit That Becomes Untreated

Suppose I have a set of units $n_i, i = 1,...,N$. One unit was receiving a treatment $n_j = 1$ at times $t=1$ to $t=\tau$. All other units never received the treatment so $\forall t, n_i=0,i\neq j$. ...
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0answers
54 views

What is the trade-off between? Consumption and Leisure or Income and Leisure?

When first presenting the utility function and its arguments, textbooks typically start by stating that utility is a function of consumption and leisure. See for example https://sites.hks.harvard.edu/...
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0answers
10 views

Have any economics papers used unified cure models?

Does anyone know if there are unified cure models (aka split population models) in time-until-employment studies that combine the mixture cure approach with the promotion time approach as described in ...
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0answers
19 views

How is labor demand measured?

For instance, in the introduction of this paper (first paragraph), talking about Figure 1, they say that labor demand is measured as the real wage bill normalized by population. Is it common to ...
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0answers
21 views

Best financial model to proportionally distribute the company's income to all employees?

I'm planning to start a project of something "innovative". And among some of the parts of the project that I'm thinking about, it's in the term of how money (profits) should be distributed. The truth ...
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0answers
58 views

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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0answers
38 views

Maximum wage laws in mercantilist France

One John K Williams (1986) writes that in mercantilist France, The government actually imposed maximum wage laws. Any employer who paid wages above a legally defined ceiling was charged with an ...
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0answers
83 views

How can I model immigration and xenophobia economically using these equations?

I'm trying to put together a toy model for immigration ($I$), labor prices ($w$), and a measure of xenophobic/nationalistic sentiment ($A$). What I've come up with so far is the following: $$\frac{dI}...
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0answers
49 views

Can the Goodwin Model of cyclical labor growth be applied in a micro context to specific industries?

I have been doing a bit of research into the Goodwin Model (1967), which generates cycles of economic activity. I understand that this is mostly used in macroeconomics. However, I am curious if this ...
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0answers
33 views

Formal terminology for positive and negative correlation between ability of workers for different jobs?

Say there are two occupations - A and B, and plenty of workers. Let's pick occupation A, and order workers from lowest to highest ability/productivity. Which is the formal term to describe the ...
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0answers
51 views

Identify absolute ability from a wage equation

Consider a simple model where the wage of a worker $i$ in period $t$ is: $$w_{it} = \theta_{t} a_{i}$$ where $\theta_{t}$ is the wage rate or efficiency wage per unit of ability, and $a_{i}$ is the ...
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0answers
22 views

Decentralization of business due to internet/mass communication, or mere bosses-at-a-distance?

Excuse my question if it sounds brutish and uneducated but I'm curious about the recent trend of businesses like Uber, Google Play Store, Apple Store, possibly even Craigslist (et al) which are more ...