# 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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### 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 ...
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### 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 ...
46 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 ...
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### 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 ...
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1 vote
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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 ...
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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 ...
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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 ...
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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....
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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 ...
1 vote
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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 ...
1 vote
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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 ...
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 ...
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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 ...
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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 ...
1 vote
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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 ...
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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 ...
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 ...
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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 ...
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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 ...
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1 vote
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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 ...
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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 ...
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 ...
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### 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 ...
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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 ...
1 vote
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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 ...
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### 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 ...
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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 ...
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### 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 ...
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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. ...
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### 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 ...
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### Minimum wages in France

Does somebody know where I can find historical data on minimum wages in France for different worker groups?
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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 ...
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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 ...
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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 ...
1 vote
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### 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 (...
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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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