# 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.

446 questions
Filter by
Sorted by
Tagged with
68 views

### 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 ...
177 views

### 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 ...
214 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 ...
1 vote
57 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 ...
35 views

### Inverse Hyperbolic Transformation of Dependent Variable

I am trying to transform a dependent variable which is a measure of time (minutes per day). To account for zero values of the dependent variable in the regression, I am taking its inverse hyperbolic ...
41 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 ...
85 views

### 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(...
1 vote
90 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!
155 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 ...
210 views

### 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 ...
1 vote
95 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 ...
21 views

### Is cause of undervalued currency the low cost of labor force or vice versa?

I read in some source that cause of undervalued currency is low cost of labor force. In another source I read that low cost of labor force is conclusion of undervalued currency. What case is true and ...
1 vote
72 views

### Is it better for low-income people to live in the countryside where it's cheap or in the city where there are more services?

Supposing someone is struggling to pay the rent in an urban area, and they don't have anything tying them down to any one place, would it make sense to move to a rural area where the rent is much ...
184 views

### Are expensive cities economically threatened by an inability to house low-income workers?

Cities like New York, San Francisco, and others enjoy booming local economies that support high-paying jobs in industries like finance and technology. This and other factors have driven the price ...
57 views

### Defining Intensive Margin and Extensive Margin

I am trying to see the effects of exogenous shocks on paid and unpaid labor. In this regard, I am trying to incorporate intensive and extensive margins of labor participation. I use "hours worked ...
565 views

### How does economic theory handle full automation of production resulting in full unemployment?

As advances in robotics and artificial intelligence continue, one possible outcome is a laborless economy, in which capital (means of production) is the dominant factor in production, by multiple ...
1 vote
226 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 ...
208 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 ...
121 views

### How does low population growth increase the effect of accumulated wealth

This passage comes from page 10 of the translation of Thomas Piketty's book Capital in the Twenty First Century: If the rates of population and productivity growth are relatively low, then ...
173 views

Gentrification is, roughly speaking, the displacement or exclusion of poor people from areas with improved amenities due to higher rents and costs of living. The question I have is whether better ...
28 views

### How to find the amount of leisure time and the good consumed in a two-person and one-good economy?

Question: Suppose an economy consists of two price-taking people, “a” and “b.” Person a has available 1 unit of “time” which he divides between rest $R(a)$ and labour $L(a)$. Person b has available 1 ...
97 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 ...
1 vote
83 views

### 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 ...
20 views

### 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 ...
1 vote
32 views

### 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 ...
1 vote
66 views

### 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....
1 vote
25 views

### 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 ...
1 vote
11 views

### 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 ...
1 vote
35 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 ...
1 vote
31 views

### 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 ...
107 views

### 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 ...
1 vote
27 views

### 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 ...
25 views

### 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 ...
91 views

### 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 ...
9 views

### 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 ...
1 vote
242 views

### 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 ...
1 vote
78 views

### 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 ...
36 views

### 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 ...
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 ...
1 vote
17 views

### 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 ...
63 views

### 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. ...
180 views

### Does the government have a role to play in certifying people's abilities for the labor market?

The nature of information often makes it look like a public good. Is this the case for certification of peoples abilities? Is there a role the government could play in certifying people's abilities? ...
45 views

### 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. ...
1 vote
46 views

### 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 ...
34 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 ...
39 views

### 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 ...
156 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 ...
1k 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 ...