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
1answer
19 views

Derive Value Functions in Job Search Model

I am reading a paper using the common job search framework, which has functions $\begin{aligned} &V_{r}\left(e_{r}\right)=w_{r}-e_{r}+\beta\left(q V_{u}+(1-q) V_{r}\left(e_{r}\right)\right) \\ &...
0
votes
1answer
50 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 ...
2
votes
0answers
50 views

Job Market Signaling w/Continuous Ability

I am currently trying to brush up on job signaling models for the upcoming semester, and came across this old exam question. There are no solutions to the question (that I am aware of), and I'm having ...
2
votes
0answers
31 views

Insights from Labor Demand Research

A few years ago during my PhD, I remember listening to a provocative keynote talk at a conference by Francis Kramarz who criticized the progress in labor demand research. He summarizes his opinion in ...
1
vote
1answer
43 views

Comparative statics when price of an input increases

Let us assume a very basic model of profit maximization of firms, wherein their output depends on labour and capital: $$ Y=f\left(K,L\right)=K^{\alpha}L^{1-\alpha} $$ Their aim is to maximize profits, ...
1
vote
1answer
63 views

Salop (1979) model for labor markets

Can the Salop (1979) model also be applied to labor markets or is there any reason why it should not be?
1
vote
1answer
72 views

Is there sound economic reasoning behind the assertion that automation will not lead to mass unemployment?

Many people are optimistic that for every job eliminated by automation, new jobs will be created so that people will always find work that pays them a reasonable wage. Is there sound economic ...
0
votes
0answers
12 views

How accepted is the theory that high marginal tax rates on the on corporations encourages higher labor wages/innovation?

I was watching a David Graeber and he put forward the idea that Bell Labs and high wages existed in the 50's and 60's in large part because there was a high corporate and marginal tax rate, so rather ...
2
votes
1answer
19 views

Examples efficiency wage papers using observational data

In one answer in this great discussion on efficiency wages it is claimed the reason that efficiency wages fell out of fashion is that we can't measure it in normal data. I agree that it is difficult ...
5
votes
1answer
233 views

Are there any general rules that can be used to assess the consequences of a significant minimum wage increase in a country's economy?

Quite recently the EU Parliament discussed upon a new draft EU law that will ensure a minimum level of wage protection in all member states. The minimum relative to average wages of full-time workers ...
0
votes
2answers
108 views

Why do oil-rich countries need expats?

In particular, why did/do the smaller states in the GCC need expats in their country? Ignoring the history of the country prior to oil discovery (which can be approximated for many of the smaller GCC ...
3
votes
2answers
114 views

Cobb-Douglas Production Function - Finding units of labour to maximise production

Given production function $f(L,K)=16L^\frac{1}{4}K^\frac{3}{4}$, where each unit of labour costs £50 and each unit of capital costs £100 and you have a budget of £500,000. Find the number of units of ...
3
votes
1answer
52 views

Consistent estimation of fixed effects

Estimating firm fixed effects is very popular in labor economics. I wonder why this is legit? The estimates shouldn't be consistent, the more firms we have the more parameters we have to estimate.
1
vote
1answer
35 views

Wages are lower than 30 years ago in Italy, why?

Recently I've seen some statistics about wage growth in the European Union in the last 30 years and surprisingly, Italy is the only country with a negative value. So, what is the root of this problem? ...
0
votes
0answers
15 views

What is the author trying to imply in this sentence? what is employment per unit of capital?

"The usage of extra machinery does not cause unemployment since, employment per unit of capital is large in labor-intensive products that the country exports and the vast world market allows ...
1
vote
2answers
118 views

A Simple Question about Labor Capital Ratios

I do not have much training in macroeconomics, so I want to know if this statement is accurate: "A \$30M dollar decrease in lending to businesses leads to a $45M decrease in aggregate labor ...
0
votes
0answers
16 views

Harrington Emerson and his 12 principles of labor productivity

Are these principles currently relevant? Which principles would you add or, on the contrary, exclude? Which principles are observed today, and which are not? Why? Which of the principles would you ...
3
votes
0answers
19 views

Does only search-and-matching predict bunching around minimum wage?

I heard a comment that search and matching models are empirically more valid than job-posting (even though the predictions are very similar) because with posting it is not possible to rationalize the ...
0
votes
1answer
37 views

US minimum wage beyond $15 per hour

Current policy debate among US lawmakers includes proposals for raising the minimum wage nationwide to \$15. It is currently \$7.25 by federal statute, which is the amount in effect except in states ...
1
vote
0answers
11 views

How to combine two different populations from two different surveys?

I have 2 surveys, each is representative of different populations living in the same country: Survey 1 – Survey of Peruvians living in Peru Survey 2- Survey of Venezuelans living in Peru. Each survey ...
4
votes
1answer
82 views

Labor market discrimination - help me understand this passage in call-back study

I'm reading up on discrimination in the labor market. In this study by Bertrand & Mullainathan (2004) they note the following: Perhaps the skills of African-Americans are discounted because ...
5
votes
1answer
88 views

Variance Decomposition of Wage Equation

I am reading two recent papers studying between-firm and within-firm wage inequality, Barth et al 2016 (hereafter BBDF) and Song et al 2019 (hereafter SPGBV). I am confused by the different variance ...
3
votes
1answer
36 views

What is being meant by "cohort-specific fixed effect for each state of birth" in Card&Krueger(1992)? What does the following equation mean?

I am referring to this paper on school quality and returns to schooling. The econometric specification has been described by eqn (1) on page 4. The authors have taken "cohort specific fixed ...
5
votes
1answer
96 views

Nonlinear Least-Squares Estimation in Practice

I am reading Jeong, Kim, Manovskii 2015 and in the paper they apply "a nonlinear least-squares method" to estimate a log-wage equation, , where $D, \Pi$, all $\lambda$s $\theta$s, and $\...
6
votes
1answer
58 views

Doraszelski and Jaumandreu (2018) Intuition

Doraszelski and Jaumandreu (2018) estimate a CES production function with two forms of productivity shocks (1) labor augmenting and (2) Hicks neutral. They claim that the increase in labor augmenting ...
2
votes
0answers
19 views

Nash Bargain VS. Rubinstein Game with Outside Option

I am reading a paper, Kessier & Lulfesmann 2006, and find that its main result totally depends on that the model setting is based on a Rubinstein game with outside option rather than a Nash ...
0
votes
1answer
61 views

Literature recommendation

Classic economic theory suggests people earn wages according to their productivity. Over time CEO's, directors, managers and the like seem to earn more relative to the 'normal worker'. Lets call this ...
2
votes
0answers
45 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
55 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 ...
1
vote
1answer
42 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
101 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
66 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)\...
0
votes
1answer
34 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
50 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 ...
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
233 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 ...
5
votes
1answer
123 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. ...
5
votes
0answers
36 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&...
4
votes
1answer
87 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 ...
5
votes
1answer
97 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
81 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 ...
0
votes
0answers
29 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
81 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
87 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
2answers
76 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 ...
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
25 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
30 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
49 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
18 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. ...

1
2 3 4 5
8