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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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 ...
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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 ...
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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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wage dynamic in search and matching model
I would like to know if we can track agents' behavior in the model with search and matching framework. Then we can know the wage dynamic of the agents. Thank you.
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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 ...
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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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Utility maximization for a household consisting of a woman and a man, with gender discrimination
Consider a household consisting of a woman and a man, with preferences over leisure and consumption given by:
$U(\overrightarrow{c},\overrightarrow{l}) = \ln{c} + \ln{l^F} + \ln{l^M}$
where $\...
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How to interpret employee turnover rates?
Whenever I look at employee turnover statistics, I encounter values of 30%, 40%, 50% per year. Of course, the annual turnover rate varies in different industries, but it is never below some 12%. The ...
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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 ...
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Dispersion of housing prices in Hsieh And Moretti (2018)
I have been reading 'Housing Constraints and Spatial Misallocation', by Moretti and Hsieh, AEJ Macro 2018, https://www.aeaweb.org/articles?id=10.1257/mac.20170388
In their equation (7), they derive a ...
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Universal Basic Income (UBI) policy proposals optimal hours worked and consumption
can someone please help me check my work for this question? I want to make sure I did it correctly.
Question:
Work:
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Is the porportion of manual labor increasing?
Broadly speaking, manual labor is producing a physical good or service. A plumber cannot write an algorithm to fix clogged pipes and sell it to desperate homeowners. Manual labor varies widely in ...
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Derivation of Labor Function
I want to know if I'm taking the right steps to derive a labor equation from a utility function. Suppose $U(x,L)=x^{0.5}+l^{0.5}$ where $L$ is labor, $x$ is our one good of interest, and $l$ is ...
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How to derive (mathematically and intuitively) the relationship between expected price level and natural rate of employment?
We know that
$ W = \mathbb{E}(P)f(u, z) $
, so that nominal wage $ W / P = (\mathbb{E}(P) / P)f(u, z) $
From Blanchard.
Furthermore,
$ W / P = 1/(1+m) $ (where m is defined as the markup on wages to ...
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Income and Substition Effect: Assumptions: Normality vs. Inferiority of Goods
A question concerning the income and substitution effect when the wage changes
Let us assume that the substitution effect leads to more less leisure as the relative price of leasure increases, and ...
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Are people less likely to apply to jobs in which they will be a minority?
Hypothesis: People are less likely to apply for a job in which they will be under-represented relative to the wider population. More technically, the distribution of job applicants is the same as, or ...
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Can you explain the poisiton of gk and c? How can c be higher than the w? c=consumption/worker,gk=growth of capital stock,x =output/worker, v=profit
Why are gk and c located where they are on this production schedule graph? How can consumption per worker be higher than the wage rate?
Can you explain the position of c and gk in this production ...
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Do freeloaders have a detrimental impact on an economic system?
As far as I can tell, proponents of different systems of governance and taxation agree that freeloading is bad, even if they disagree on where the lines are (or ought to be) drawn. I'm not sure I ...
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How is potential experience usually measured in the Mincer equation?
Wikipedia specifies the Mincer equation like this:
$$\ln w = \ln w_0 + \rho s + \beta_1 x + \beta_2 x^2$$
and states that $w$ is wage, $s$ is years of schooling and $x$ is potential experience.
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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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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 ...
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Why does the government spending increase by the "same" amount as the demand?
I know that governments can increase demand by increasing employment, transfer payments, and capital for the private sector.
Why does government spending increase by the ""same"" ...
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Why doesn't the consumption function include savings?
Why doesn't the consumption function C=C(Y-T) include transfer payments?
If we assume that C=MPC(Y-T), and that the MPC assumes that one part of the increase of income goes to savings. But what about ...
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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!
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In the Cobb-Douglas production function, why do K and L have these effects?
Why does an increase in K lead to an increase of MPL, and to a decrease of MPK?
Likewise, why does an increase in L lead to a decrease of MPL, and to an increase of MPK?
Thank you.
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Why is a donation of cash preferred over an equivalent donation of labor?
Suppose you went down to your local animal shelter or homeless shelter and asked:
I would be happy to volunteer 10 hours every weekend. I will perform general-purpose labor, meaning I will do any ...
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Why is it Y=F(K,L), and not Y=F(K,L, Economic profit)?
Initially, we have the distribution of income:
Y = MPLxL + MPLxK.
But, when the economic profit = 0, we have constant returns to scale. And since, input=output, if I am not mistaken, there is just ...
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Is labour considered normal by someone whose utility function is $u = cl$?
If $l$ is hours of leisure and $c$ is the consumption units, can we show that leisure is a normal good for someone whose utility function is $u = lc$?
If $w$ denotes wage per hour, $i$ denotes the non-...
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What is "the marginal cost of the work performed"?
A section in my (mostly conventional) transport economics (Blauwens, De Baere, Van de Voorde, 2002) handbook discusses the use of transport policy to generate employment (as a second-best solution: ...
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How to estimate $\gamma$ in the following model?
Suppose I have the following model:
$Q=1(x'\beta+e>0)$,
$D=1(x'\alpha+\gamma Q+u>0)$
and I want to estimate $\gamma$, the error terms $e,u$ are jointly normal.
If $e$ and $u$ are correlated, can ...
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the future effects of Covid 19 pandemics on GINI (income inequality)
I would like to analyze the future effect of Covid 19 pandemics on the Gini index (income inequality).
Which dependent variables should I use in order to see the effect of the pandemics?
For example, ...
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Solve Joint Distribution From An Equation
In Postel-Vinay & Robin 2002 they show an equation: $$\left\{\delta+\mu+\lambda_{1} \bar{F}(p)\right\} \ell(\varepsilon, p)=\left\{(\delta+\mu) h(\varepsilon)+\lambda_{1} \int_{p_{\min }}^{p} \ell(...
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Marxist Labor Theory of Value Become Obsolete?
Has the Marxist Labor Theory of Value Become Obsolete? Is it currently used for anything? Marx does not specify labor value, I believe he only uses the argument of surplus value according to the labor ...
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Evidence of the Efficiency of Competitive Search Equilibrium
Econ theoretical literature suggests that competitive search equilibrium can arise efficiency allocation by internalizing the congestion externalities. A typical example is that the Hosios condition ...
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The correct way for log wage and long difference of wage
Good afternoon, I'm starting to study econometrics and I have a doubt:
I want to study the relationship between ICT exposure and changes in wages over the period of 2003 to 2021
$$\Delta y_{o} =\...
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What (and how) to control for in adjusted wage-gap regressions?
Background: The unconditional wage gap between some group and the rest is often estimated using a regression of the form
$$
w_{it} = \alpha + g_{it}'\theta +\epsilon_{it}
$$
where $w_{it}$ is log of ...
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Calculation of labor, capital and productivity deviation
In Ohanian (2010): The Economic Crisis from a Neoclassical Perspective ( https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.24.4.45 ) I read about labor, capital and productivity deviation. I would like ...
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Labor=1 in standard growth model
In every standard growth model, we suppose labor=1.
I learnd that this is because optimization solution of labor is equal to 1.
How to derive that optimazation solution?
For example, consider that ...
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