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.

Filter by
Sorted by
Tagged with
2
votes
0answers
29 views

Event study by Kleven

I was reading the following paper by Henrik Kleven et al. https://www.henrikkleven.com/uploads/3/7/3/1/37310663/kleven-landais-sogaard_nber-w24219_jan2018.pdf The estimate the child penalty on wage ...
0
votes
1answer
50 views

Is the pooling equilibrium profit maximising for the firm?

Is the pooling equilibrium profit maximising for the firm? I understand that when there are no ways for the firm to distinguish among highly productive and low productive worker the best the firm can ...
0
votes
2answers
52 views

Sunk costs - Book value and Market value

i try to understand the concept of sunk cost and how we compute sunk costs when there is a difference between book and market value. For example, if the book value of assets is ...
1
vote
1answer
36 views

What does it mean “non-Walrasian” or “quasi-Walrasian”?

In a recent NBER workshop, Robert Hall started a discussion with his first slide summarizing the macro literature. I am not very familiar with either DMP model or New Keynesian model and have no idea ...
1
vote
1answer
97 views

What impact does the paid vacation leave have on labor productivity?

I'm asking just one question (it's in bold). If you treat any sentence with a question mark as another question and thus violating the policy on "focusedness", please steer clear of the text ...
4
votes
0answers
46 views

Solve the Ben-Porath Model (Optimal Control Problem)

Suppose we have a Ben-Porath style human capital investment model, in which the representative agent maximize her lifetime earnings: $$V(h, a)=\max \int_{a}^{R} e^{-r(t-a)}\left[ w h(t)(1-n(t))-px(t)\...
112
votes
16answers
19k views

How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

Decades ago a factory job could support a wife and kids until retirement and they offered insurance, benefits, etc. Now, no more unions, those jobs as well as tech and customer service jobs are ...
4
votes
1answer
78 views

Lecture notes competitive labor market with minimum wage

Can somebody recommend lecture notes that derive competitive labour market model equilibrium with minimum wages? This has been surprisingly hard to find, because most lecture notes use minimum wages ...
19
votes
5answers
3k views

Why are real median household incomes stagnant?

This image shows US real median household income. It seems remarkable for its lack of growth over the last 20 years. This has been the subject of much political debate (around the "1%" and "occupy ...
2
votes
5answers
710 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 ...
0
votes
1answer
33 views

Basic question i guess

I'm not in economics, I'm actually studying sociology and I'm doing a subject about labor economics. I'm reading an article that talks about automation and says "The employment impact of ...
7
votes
0answers
44 views

Lab experiments of labour markets

I have been searching for papers that conduct lab experiments simulating a labour market, that means for a minimum there are both participants taking the role of firms, and participants taking the ...
2
votes
1answer
101 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 ...
0
votes
1answer
89 views

Would an $8 National Minimum Wage Work in the US?

For those who advocate a \$15 minimum wage, would the benefits espoused also come from an \$8 minimum? The reason I ask, is that it’s often said that the minimum wage needs to be updated as it was ...
0
votes
0answers
10 views

Other option to compute regions wages in real term in the UK (Urgent!) [duplicate]

Is there any good indicator that can replace region CPI in order to deflate workers income. I have tried to get the data from the ONS in the UK but they only contain the data for England as a whole ...
1
vote
1answer
226 views

Can the theory of the second best mathematically justify labor unions in some scenarios?

An EPI page says: Some economists and policymakers might express unease at the view that the downsides of one deviation from “competitive” markets (either labor market frictions or market ...
6
votes
1answer
284 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 ...
4
votes
1answer
91 views

Is egyptology a pyramid scheme: Self-perpetuating university programs

My friend got a degree in egyptology, but can’t get a job, So he’s paying more money to get a Phd, so he can work teaching other people egyptology. In his case college is literally a pyramid scheme. ...
9
votes
5answers
640 views

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 ...
4
votes
0answers
35 views

Do Human Resources use information on applicants' child rearing effort as a signal

In Spence's Job Market Signaling paper (a non-paywalled version is available here) firms observe applicants' educational investment. From these signals the firms glean information on the "type&...
5
votes
1answer
54 views

CES First order Condition with two labour types

I am struggling to derive a first order in this model with Cobb-Douglas production function and CES labour aggregator with two types labour (here male and female, but could be equally low and high ...
5
votes
1answer
76 views

When can one drop time subscripts? Example from Angrist and Kugler (2003)

Not the first time I am asking myself, but in this paper they actually start with a time dependent maximisation problem and then drop all time subscripts. Background: They have profit maximisation ...
1
vote
1answer
52 views

extensive vs intensive labor in US in recent decades

Total Hours worked is a mix of extensive (to work or not, the usual standard working week) and intensive (how many hours to work). I'm interested in how this balance of extensive and intensive ...
0
votes
0answers
18 views

Denominator for the Labor Force Participation By group

I want to check that I am using the correct definition for labor force participation rates by gender or income group. For instance, if we have the following: 1- Working age population of 800 people, ...
5
votes
1answer
78 views

Deriving aggregate output from labor demand and supply

I was reading the following paper: http://eml.berkeley.edu//~moretti/growth.pdf I got stuck at equation (7) The firm's production function is $Y_{i}=A_{i}L_{i}^{\alpha}K_{i}^{\eta}T_{i}^{1-\alpha-\eta}...
4
votes
1answer
77 views

How to compute elasticity of substitution in labor market of blacks and whites using experience-education groups?

I'm reading "Competition in the Promised Land – Black Migrants in Northern Cities and Labor Markets", by Leah Boustan, and I'm trying to understand her computation of black and white ...
0
votes
0answers
35 views

Fixed cost, sunk costs and variable costs

i need to answer to this question but i'm wonder if i need to use the short-run cost function (C = wL * rK) of not. Can you help me ? This is the statement : A small business owner employs 5 workers. ...
2
votes
0answers
20 views

Brücker et al. (2014) migrant labour supply shock

Brücker et al. (2014) write down a stylized model of wage-setting with a labour supply shock (migration), which I find hard to follow. Maybe somebody worked on it or is interested.. Labour force is ...
0
votes
0answers
29 views

Behavioral responses of tax policy on labour supply ( first time doing Difference in Differences)

I am trying to estimate the causal effects of the The Working Income Tax Benefit (WITB) on the labour supply of married women in Canada. The WITB is essentially equivalent to the EITC. I am looking at ...
1
vote
0answers
45 views

Derivation of wage rate from nested CES production function

could anyone please help to explain how equation (4) in this paper is derived? I understand that it's an application of first order conditions using the chain rule from equations (1)-(3), but the ...
0
votes
1answer
16 views

Is there contradiction between automation created resilience and the full employment (with high wages)?

From the one side - full employment with the high wages (but still under the level of creating inflation threat) is nice thing and politicians and central banks are highly motivated to achieve this. ...
2
votes
0answers
35 views

Marginal Cost of Labour Under Monopsony - is the real world like this?

How common is a Perfectly Discriminating Monopsonist in respect to labour rates? Or anything close to it? Standard explanations show a normal supply curve for labour, and the marginal cost of that ...
0
votes
1answer
32 views

Advice on method for analyzing the effects of increase in minimum wage

As a hobbyist and generally curious person with a lot of free time at home, I was curious what would be a good method to analyze the effect of an increase in the minimum wage of a country if you only ...
0
votes
1answer
65 views

What is the term for workers who outputs more than other workers at the same wage thus depressing wage for others? [closed]

What is the specific term for this worker: A worker who outputs more than other workers at the same wage, therefore now the owner doesn't have to pay workers as much since he gets the same total ...
0
votes
0answers
50 views

Labor Supply- how to do comparative statics?

Consider an economy with a competitive industry where the representative firm's production function takes the form of a Cobb Douglas production function $Y=z K^{\theta} L^{1-\theta}$. $z$ is an index ...
0
votes
0answers
20 views

Probability transition matrix as a function of the variance in Matlab?

I am working on Probability transition Matrix on Matlab. I Have say 5 points (states) of discretized productivity grid. I would like to have two matrix of probability transition subject to the ...
1
vote
0answers
38 views

Imputing # of unemployed from Labor Force Survey

I am working on state-level data, where one state has recently stopped publishing the absolute figures for the number of the unemployed. Instead, it currently only releases U and LFP rates. ...
-1
votes
1answer
46 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, ...
1
vote
2answers
59 views

Dataset on university enrollment?

I'm looking for a dataset with stats on tertiary education enrollment in the US, per state, at least a couple decades back. I've searched but cannot seem to find anything. Could someone help me out?
4
votes
1answer
83 views

Walras Law in a production economy with fixed costs

Consider a price taking firm with fixed costs $fc \geq 0$: \begin{align*} \Pi &= \max_{n^D} \left\{ P_c F(n^D) - w\times n^D - fc \right\} \end{align*} A representative household owns this firm:...
1
vote
1answer
44 views

How does demand curve for labor change when there is a proportional payroll tax on employer

In the textbook "Borjas, G.J. Labor economics." (Boston, Mass.; London: Irwin/McGraw-Hill, 2009) fifth edition [ISBN 9780070172708]. Below is a screenshot of the example of payroll tax of 1 ...
18
votes
5answers
2k views

Unemployment and the Minimum Wage---what are the main counter-arguments to Card and Krueger?

Card and Krueger's paper (AER 1994, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania") uses a difference-in-difference identification strategy to ...
0
votes
3answers
12k views

Why does the real wage = W/P?

Im reading about labour markets, and the notes mention that the real wage 'w' = W/P, where W = the nominal wage, and P = the price level. Could someone please use some 'W' and 'P' as an example to ...
1
vote
1answer
41 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, ...
7
votes
1answer
72 views

What are the economic drivers of urbanisation?

It is regularly argued that urbanisation drives economic growth (e.g. here). I wonder which are the drivers that lead to urbanisation in the first place? I believe the historical case of the ...
3
votes
1answer
61 views

Does education have any value for most people's work?

Let me first say that I am not an economist. However, I was having a discussion with one of my friends who claimed that he had absolutely no gain from his education other than it actually being the ...
0
votes
0answers
36 views

Differentiated or uniform tax

Suppose Person 1 is working in Denmark and has the utility function, $$u(c,l)=c-\frac{\eta}{\eta+1}(24-l)^{\frac{\eta+1}{\eta}}$$ His wage after tax is $w(1-t)$, where tax, t, $0<t<1$. A second ...
1
vote
1answer
56 views

Maximized tax revenue & foreign labor

I'm dealing with a tricky assignment, and I have no idea of where to begin. Person 1 lives in Denmark and has a utility function given by, $$(1) \ \ u(c,l)=c-\frac{\eta}{\eta+1}(24-l)^{\frac{\eta+1}{\...
18
votes
3answers
5k views

Why do wages not equalize across space?

In standard economic theory wages are simply prices on the labor market determined in equilibrium by the supply and demand of labor. Looking across space within countries it is however standard to ...
0
votes
1answer
29 views

EmpirIcal evidence on effects of price floors and ceilings

In introductory microeconomics, when studying partial equilibrium, we are introduced to the idea that a price floor will cause excess supply and a price ceiling will cause excess demand. How strong is ...

1
2 3 4 5
8