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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4
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1answer
118 views

Showing that the elasticity of arrival rate for workers wrt $\theta$ is between $0$ and $1$

Let $L=E+U$ where $L$ is labour force, $E$ is number of employed, and $U$ is unemployed people. Let $u = \frac{U}{L}$ and $v = \frac{V}{L}$. Given $m(u,v)$ as a matching function that determines ...
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1answer
27 views

Static wage posting model and indifference to wage levels

Suppose a monopsonistic firm has the following simple profit function: $$\pi (w) = PL(w) - wL(w) $$ where $L(w)$ is the labor supply, $P$ is the constant output price, and it has a linear production ...
3
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1answer
72 views

Matching in Blanchard-Diamond (1994)

Setup Blanchard-Diamond (1994) have a model where each unemployed has a single ball (application) that she tosses into urns (vacancies). With probability $a$ the application lands in the urn - the ...
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0answers
131 views

Job-finding rate in an urn-ball model with types

Setup Say you have two types of workers, high and low. The share of low-types among the unemployed population is $P$. I want to find the job-finding rate for these types. Matching Matching is ...
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5answers
2k views

Unemployment and the Minimum Wage---what are the main counter-arguments to Card and Krueger?

Card and Krueger's paper (AER 1994, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania") uses a difference-in-difference identification strategy to ...
2
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0answers
37 views

Negative Interest Rates - Supply-Side Policy

(This is 3rd Part of a series questions under "Negative Interest Rates") Motivation: I've happen to stumble on two articles, with some weeks, that the central bank(CB) of switzerland, due to Russia ...
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1answer
74 views

RDD, wages, and day of birth

What I am doing: I use the regression discontinuity design (henceforth RDD) to study differences in wages received by people born at the end of the year and by those people born at the beginning of ...
2
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0answers
58 views

Is America economy, Connecitcut's economy, and the global in general recovering and better than the year 2008?

Please answer all three if you can. I live in Connecticut, America, and of course global trade and economies matter as we are becoming more global from technology. December 2007 the markets ...
5
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0answers
171 views

Consumption-Leisure Elasticity

The macro-literature insists on a consumption-leisure elasticity of 0 to match the balanced growth fact of constant labor supply. Is there any paper that tries to evaluate this elasticity using ...
3
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2answers
46 views

Can the cyclicality of the real wage be used as a measure for the degree of competiveness in the labour market?

When reading the answers to this question of mine, I'm left wondering if cyclicality of real wages can be seen as an indicator for the nature and degree of competition in the labour market. In ...
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2answers
2k views

Cyclicality of Real Wages? Counter, pro or acyclical?

Is the real wage counter or pro- cyclical? I've read in some textbooks that the real wage is mildly pro-cyclical, but I've also found some papers stating that it's acyclical. So, which is it? Also, ...
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3answers
254 views

What keeps minimum wage rates in balance?

I would posit that the minimum wage is determined more on a political than an economic basis. The fact is that there are more wage earners than business owners and, generally speaking, the wage ...
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2answers
131 views

If America's economy collapsed what would happen to all of the citizens? What if the whole global economy collapsed? [closed]

My journalism professor is not an expert in finance or economics but has studied history. She is always giving us a negative lecture on the America's economy and how the rich are taking al of the ...
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1answer
745 views

Is America getting to a point where there are many more people than jobs or money to go around? Are times better or worse than 50 years ago? [closed]

Is America headed to a point of too many people, not enough work? Is life for an average American better than 50 years ago? I have asked about automation in my first question. Then I've asked a ...
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4answers
212 views

Can absence of inflation be accounted for by a reconfigured class structure?

A previous and oft-heard question asked why no inflation results from the Fed pumping money into the economy. Are we simply seeing a methodical wage suppression, thus no official "inflation," while ...
1
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1answer
344 views

Tax wedge in labour market

I'm reading a book ( Macroeconomics - Institutions, Instability and the Financial System ) and on page 62, the authors define tax wedge as the "difference between the real consumption wage and the ...
2
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1answer
163 views

General Equilibrium Modelling

I have a question regarding GE modelling. The firm's problem is to: $$ \max\pi=pf(k,l)-wl-rk $$ If this is true, we choose $l$ and $k$ to maximize the difference between costs and revenues. This ...
2
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1answer
110 views

Adam Smith: If humans are self-interested individuals, why should we reinvest our wealth?

According to Adam Smith, humans are self-interested individuals. If this is true, why does he argue that people should reinvest their wealth? How does this benefit a self-interested individual? Does ...
3
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1answer
70 views

CPS CEPR: ORG and Monthly

How does the CPS CEPR store employment information for the non-ORG months? I am trying to reproduce Mueller (2012). He says The CPS is the main labor force survey for the U.S., representative of ...
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2answers
125 views

Finding an intercept on percentage based data and using dummy variables

How do I find an intercept on a percentage data? My data has percentage of grades ( I have converted to numbers where $A^*=8, A=7,B=6...U=0$) by ethnicity and other indicators which I want to test for ...
3
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2answers
78 views

Why is the Supply of Labour More Elastic in a Single Province/State then it is in the Country as a Whole?

Apparently, the federal government has a greater ability than provincial government to increase tax revenues by raising tax rates because the supply of labour is more elastic in a single province than ...
3
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1answer
72 views

Is it possible to reconstitute a labor theory of value?

I am not an economist, so highly technical answers may escape me. I know that since Jevons, Marshall, and the "marginal revolution" the classical labor theory of value has been largely abandoned. And ...
6
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1answer
237 views

Are there any studies that show that “Affirmative Action” hurts the economy?

Are there any studies that show that "Affirmative Action" (an action or policy favoring those who tend to suffer from discrimination, especially in relation to employment or education) hurts the ...
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0answers
28 views

Estimates of the global STEM workforce?

I am looking for any recent estimates of the global STEM workforce (STEM = Science Technology Engineering Mathematics, and ideally includes software engineers). Time series data would be even better, ...
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0answers
38 views

Total costs as function of labor and quantity [closed]

If I have wage $w = 200$ and rental rate $r = 3050$ on short run, I can assume that $K=1$ and then get the total costs $TC = rK+wL = 3050 + 200L$. Isn't it correct? But what if I also have a cost of ...
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2answers
75 views

Proving or disproving hypothesis?

I took statistics class years ago in my college and I don't remember much of it now. I am into public policy research now and I am bit confused about about what conclusion to make from available ...
5
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1answer
465 views

Instrumental variables for minimum wage

I was wondering if there is a classic instrument for minimum wage as there is for schooling or other variables. If so, how does it fares with respect to most established designs like spatial ...
6
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1answer
2k views

Why is the percent of Australian businesses that don't have any employees so high?

I'm trying to understand this Australian Bureau of Statistics release: http://www.abs.gov.au/ausstats/abs@.nsf/mf/8165.0 It says: In June 2014, 61% of actively trading businesses in Australia had ...
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0answers
58 views

What is the cumulative amount of working hours for consumer products?

Is there any research about the cumulative amount of working hours for consumer products like cars or mobile phones? With cumulative amount of working hours I mean the total amount of working hours ...
5
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2answers
174 views

Stimulus Effect of the Minimum Wage

In the question about the minimum wage found here, I have heard several times that an increase in the minimum wage can, as one of several competing effects, "boost the economy" by increasing the ...
1
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1answer
92 views

Why consider non-farm payrolls?

Why does the US consider non-farm payrolls when looking at employment levels? What are the reasons for not including farms? Are the workers too transitive, does it not contribute in a certain way to ...
5
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1answer
86 views

Geographic mobility of workers within Germany, as compared to within the US?

Martin Feldstein (1997, p. 36) claims that workers within the US are more geographically mobile than say within Germany. I had known that US workers were mobile. But one sentence of his seems a bit ...
3
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1answer
76 views

How are working hours statistics computed?

In a recent conversation, I was suggested that national working hours aggregates, as provided by bureaus of statistics, are based on surveys on time use. Is that true? Can macro labor data, which is ...
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3answers
729 views

Why does adding a quadratic term to a regression change unrelated coefficients?

I'm in STATA and using 2010 data from Ipums. I'm trying to measure the wage differential between single men, married men, single women, and married women. I ran my first regression and got the ...
5
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1answer
194 views

What term/theory describes more efficient utilization of a resource?

I may be asking the wrong question here, but I wonder if there is a term/theory that describes/studies the evolution of an economy that continually improves the utilization and allocation of certain ...
6
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2answers
356 views

Unemployment and the Frisch-Elasticity

There is the long debate on the Frisch-Elasticity being the driver of unemployment over the business cycle. One argument against the voluntary-unemployment mechanism of RBC models is that if we ...
4
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1answer
174 views

Generalized KPR: Frisch Elasticity

Consider the following version of KPR preferences (with $l$ being leisure): $$ U(c,l) = \left(\left(c\right)^\gamma l^\omega\right)^{1-\sigma}$$ I'm after the Frisch elasticity: $$ \frac{\partial(1-...
7
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3answers
790 views

Why did creating the Eurozone cause the cost of labor to rise in Greece?

As I understand the implementation of the Euro as a common currency caused labor prices to spike in certain countries, Greece being one of them. Why did this happen? Why did it affect certain ...
4
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1answer
112 views

Empirical Data on Demand for Minimum-Wage Jobs in the USA

The idea of a minimum wage and its effects in terms of supply and demand are well-known in mainstream economic theory. I'm constructing an argument regarding the minimum wage, and what I'm curious ...
0
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1answer
147 views

Test: Part-time Workers Effect on Unemployment Rate

I want to test the causality of part-time workers on unemployment rate. Should i use part-time workers as a share of total employment or total labour force? If I run a regression of part-time workers ...
2
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1answer
98 views

RBC model and indivisible labour

First of all, I would like to apologise for the fact that I will include a link in my question rather than a direct question, however, I have no idea how to do it in a different way. I have been ...
2
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0answers
182 views

Hot Topics in Labor-Macro

I'm interested in currently hot research topics within Labor Macro. I'm only aware of the debate on the recent shift in the US Beveridge curve, and, of course, the olden but golden Shimer puzzle. ...
2
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2answers
212 views

King-Plosser-Rebello Preferences: Scale leisure

KPR preferences are given by $$ U(c, l) = \frac{\left(cv(l)\right)^{1-\sigma}-1}{1-\sigma}$$ with concave increasing $v$ and $c$, $l$ denoting consumption and leisure. In the limiting case of $\...
6
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3answers
1k views

Has the natural rate of unemployment decreased with modern travel and the Internet?

The natural rate of unemployment is a combination of structural unemployment and frictional unemployment. Structural unemployment is caused by a surplus of labor at a given wage in a given area. ...
5
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2answers
135 views

Has Stack Overflow been economically beneficial to programmer productivity?

Has Stack Overflow an overall positive impact on programmers productivity? On one side, it takes time and effort to ask and answer questions -- thus decreasing productivity. On the other side, ...
6
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2answers
932 views

Why life expectance is growing faster than retirement age? - source needed

Need sources of information about "Why is life expectancy growing faster than retirement age?" Is there any literature about "why the increased quality of life and medicine in rich countries doesn’t ...
4
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1answer
120 views

Reasons for the recent rise in long-term unemployment

Kroft et al document the raise of long-term unemployed in the US during the recent crises. This is an impressive figure from their paper: They show that the raise does not come from compositional ...
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1answer
44 views

Reject worker after match

In the DMP family of labor models, we typically have $V$ denoting a vacancy and $J$ denoting the value of a job. $V$ typically becomes 0 through free entry. Say a firm get matched with a worker of ...
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1answer
316 views

DMP: Two Labor Markets

Consider the following extension of the standard DMP model, in which we have two labor markets with different returns, indexed $i$. The markets are completely separated and firms and workers can only ...
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1answer
27 views

Data: Vacancies in the US before 2005

Shimer (2005) says These [separation shocks] introduce an almost perfectly positive correlation between unemployment and vacancies, an event that essentially never been observed in the United ...