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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1answer
120 views

Could price floors improve worker safety in the meat cutting industry?

Could price floors improve worker safety in the meat cutting industry? My question is inspired by the Future Perfect podcast https://www.vox.com/future-perfect/21502225/chicken-meatpacking-plant-...
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Estimating $dL/dw$ with direct dependencies using total differential

I have $U(C,L) = U(C) - v(L)$ where $C$ is consumption and $L$ is labor supply. From my first order conditions, $C$ is a function of $w$, wage, and $L$. $L$ is a function of $w$ and $C$. Leisure is $N ...
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The decline in the number of domestic servants

does it mean that the market mechanism does not work—that the offer of the going rate of wages does not secure a servant because servants do not move to the highest bidder? This complaint—which would ...
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3answers
661 views

Field experiments on labour market discrimination: do sizes of randomly assigned groups matter?

In traditional field experiments on racial discrimination, two identical resumes differing only by name or ID photo are sent to randomly selected firms. A statistical test is then run on the number of ...
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6answers
363 views

What determines whether slavery is economically efficient in industrialized/modern era economies?

Various forms of slavery were nearly universal before the industrial revolution. After industrialization, it would naively seem forced labor would continue to be widespread, as there is no way to ...
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52 views

Marginal rate of substitution interpretation

I am trying to interpret the marginal rate of substitution stidied in an article. The article in question is Burbidge, J. B., Robb, A. L., 1980. Pensions and retirement behaviour. The Canadian Journal ...
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1answer
37 views

The problem of transformation: what is it all about?

I've just learned Marxist concepts that Value= cost + wages + owner profit But I do not understand what the transformation problem is and what problems exists because of this. Would someone mind to ...
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1answer
29 views

What is the probability of an unemployed worker receiving no job offer during a time period?

we are currently covering one sided search models and I had a question for you all. I kind of understand the raw calculus behind finding the probability of a job offer over a time interval h, but what ...
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1answer
129 views

Why are Americans at the top of nearly every field?

I live in India, and having spent several years in America before returning, I noticed that Americans dominate in nearly every sphere of human activity. For example, the US seems to be blessed with ...
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1answer
32 views

What is the meaning of “labor input” in the context of incentive theories?

In the article "Multitask Principal-Agent Analyses: Incentive Contracts, Asset Ownership, and Job Design" (Holmström and Milgrom, 1991) it is said that two identical agents ($i=1,2$) devote ...
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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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1answer
29 views

How can a country develop the skills of its population and have them stay? [closed]

Suppose, I am a leader of a country, and a lot of my citizens go to the Gulf states (see 3.1, Page-09) to work as unskilled laborers. I see my population working abroad as laborers as a prestige ...
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1answer
45 views

Piketty's explanation of elasticity of substitution (from his book Capital in the 21st century)

I have some trouble following the explanation of the elasticity of substitution between capital and labor and its implications on p189. Take this part: The relevant question is whether the elasticity ...
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47 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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1answer
68 views

Economics perspective of connected workers

According to the Deloitte report published here, a connected worker is defined as someone whose working life is changing due to digital and other technologies. This is due to advancement of ...
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2answers
44 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?
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1answer
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More than one Bellman Equation

I'm attending to my first dynamic optimization course, and what I don't fully graps yet is that sometimes we have to use more than one bellman equation. How do you realize that? I mean how do you know ...
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2answers
53 views

Convenient S-shaped production function (i.e. with IRS and DRS) to derive a discontinuous demand for labor

Let say that a firm produces a commodity using only one input (i.e. Labor if we suppose to be in the very short run). Then we have a general production function of the following form $y=f(L)$, for $L≥...
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1answer
44 views

Neutral technical progress

Recently I learnt that Cobb-Douglas production function has elasticity of substitution equal to 1, therefore it has neutral technical progress. Then Leontief production function has zero elasticity of ...
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0answers
26 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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1answer
40 views

Price Changes in Factor and Product Markets

I think something is wrong in my reasoning, and I can't really find out what it is Lets say the supply of labor decreases in a market. That would mean that the wage rate would increase in that market....
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0answers
36 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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2answers
50 views

Why labor-augmenting technological progress increases employment and wages?

My textbook says that advances in technology typically raise the marginal product of labor and shift the labor demand curve to the right and calls it labor-augmenting technological advances. The book ...
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33 views

Empirical Bayes Estimation

I would be greatful if You can give some advise regarding the following problems: As I reviewed some empirical papers, I learnt that most of them using relatively small number of observations for ...
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1answer
36 views

Under what BLS line do “people who want a job but haven’t searched in the last 12 months” show up?

I'm trying to understand how this CNN math was derived: This category — jobless people who “want a job now” but “did not search for work in the previous year” — has hovered around 3 million workers ...
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Does the income from a product or art count as passive income?

When a writer publishes his book, can we classify the income from the book as passive? Or another example, when a musician publishes his album, does the album generates passive income, making any form ...
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1answer
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Unions, right to work laws [closed]

Can anyone explain what right to work laws are? along with any thoughts about unions. Do they actually benefit the worker and overall market? Thank you.
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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 ...
2
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1answer
38 views

Constant Elasticity of Substitution (non-special cases)

I am trying to better understand the CES function: $$Y_{t}=C\left[\pi\left(A_{t}^{K} K_{t}\right)^{\frac{\sigma-1}{\sigma}}+(1-\pi)\left(A_{t}^{L} L_{t}\right)^{\frac{\sigma-1}{\sigma}}\right]^{\frac{...
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18 views

When do we have diminishing marginal returns to labor?

When we have a production function exhibiting constant returns to scale, with only labor and technology, why don't we have any diminishing marginal returns to labor?
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0answers
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 ...
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1answer
24 views

Why is the velocity of money in an economy affected by the frequency in which the worker is paid (like weekly, bi-weekly, monthly, etc.)?

I don't have any economics background, and was going though a course on Macroeconomics. I was solving the practice question here: https://mru.org/practice-questions/causes-inflation-practice-questions?...
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18 views

Taxes on Family leave pay

I don't know if this is the correct forum for this question, but do we have to pay taxes on checks from the government that were paid from taxes in the first place. For example, like Social security ...
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22 views

If the payroll tax were eliminated on incomes below $30000 what would happen?

If you canceled all payroll taxes below $30000 / $60000 single / married what would happen? I know that this could increase firm profits, or increase wages, or the number of jobs, or decrease prices ...
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1answer
35 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
25 views

According to human capital theory, in which country will citizens be more likely to go to college?

Assume that in country A college tuition is 10,000 per year, citizens save 5% of their income for retirement, and there is a mandatory retirement age of 60 years old. In country B, the tuition for ...
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1answer
219 views

What does Piketty mean by the C90/C10 ratio?

I am currently readings Piketty's "The Economics of Inequality", where he states in chapter 3: The P90/P10 wage ratio in the United States in the 1990s is 4.5, whereas it is “only” 3.2 in France (...
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1answer
111 views

How does capital accumulation raise the demand for labor

in "Artificial intelligence, Automation and Work" by Acemoglu and Restrepo, the authors write: Capital accumulation: As our framework in the next section clarifies, automation corresponds to an ...
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0answers
14 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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1answer
100 views

What are the effects of abolishing the minimum wage?

There's this one guy out there, Peter Schiff, and he aired on Joe Rogan a while back. One part of the podcast really caught my attention, and it was when Schiff said that the minimum wage should be ...
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1answer
53 views

Why would overemployment mean that labor is used inefficiently?

If labor is being used efficiently, there is no excess unemployment or over employment. This phrase from Khan Academy struck me as quite strange. Why on Earth would over employment mean that labor ...
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1answer
93 views

Job search theory in discrete time

Let us assume that there is a labor who lives in discrete time universe and discounts future payoffs with the discount factor $b\in (0,1)$. And we assume that this labor is at period $t=0$ at first. ...
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2answers
45 views

Is there no equivalent exchange? [closed]

There is no equivalent exchange. I think it doesn't exist. The so-called equivalent exchange is imaginary. In exchange, one side always makes money while the other side loses money. For example, if ...
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2answers
28 views

Can you take the moving average of quarterly data of an explanatory variable in a regression to smoothen noise and get more accurate coefficients?

I'm trying to use acceleration of quarterly data on household debt (the difference in the difference in debt) in a regression on unemployment (only concerned with correlation) but quarterly data is ...
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1answer
28 views

Breadwinners by class

I have a hypothesis that single-income families greatly increase as you get into the mid to upper middle class bracket. And that 2+ income sources are common in lower classes and also the extremely ...
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0answers
42 views

What is the economic interpretation of the solution of this optimal control problem?

I have the following optimal control problem $$\max_{c_t} \int^{\infty}_0 e^{-p_it}\ln(c_t(i))dt$$ subject to $$\dot{w_t}(i)=rw_t(i) -n_ic_t(i)$$ $$w_0(i)=w_0>0$$ I have some wealthy and ...
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1answer
23 views

Value flow in economy - redefinition credit and money?

There are voices that there are already too much debt in the world (government, personal, government debt) and that can be the cause of the crisis. From the other hand the the only solution offered by ...
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1answer
70 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 ...
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1answer
34 views

Question on Human Capital Accumulation Model by Acemoglu/Autor

I was reading the lecture notes by Acemoglu and Autor on Labour Economics. https://economics.mit.edu/files/4689 I was able to understand equations 1.1 to 1.8 of the notes; however, I am unable to ...
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38 views

income effect and substitution effect

Question:Assume no non-labor income, Alice's labor supply function is $h(w) =\frac{w}{16}$. Her preferences are given by $u(c, l) =\sqrt{c}+3l$. When the wage rate increases, Alice's labor supply ...

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