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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370 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 ...
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185 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 ...
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112 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 ...
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1answer
72 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
135 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 ...
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86 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 ...
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1answer
74 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 ...
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1answer
249 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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29 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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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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79 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 ...
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1answer
518 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 ...
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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 ...
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181 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 ...
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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 ...
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1answer
77 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
766 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 ...
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1answer
195 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 ...
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2answers
368 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 ...
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1answer
198 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-...
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3answers
812 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 ...
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1answer
113 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 ...
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1answer
150 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 ...
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1answer
106 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 ...
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0answers
187 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. ...
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2answers
229 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 $\...
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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. ...
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142 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, ...
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2answers
937 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 ...
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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
319 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
28 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 ...
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48 views

Separation shock and business cycles

In the context of the Diamonds-Mortensen-Pissarides models, there was a reasoning why a separation shock cannot fit business cycles. I think it was brought forward by Shimer, but I could be wrong. ...
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1answer
234 views

Unemployment: Human Capital Deterioration

I am looking for Macro-Labor models that include deterioration of human capital. The mechanism is simple: The longer you were unemployed, the more human capital you are losing. However, this is ...
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0answers
29 views

Consumption of the unemployed

I am wondering how the consumption of the unemployed varies over the business cycle. We know that wages of people getting fired in busts are higher than wages of people in booms (Mueller 2012), so ...
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1answer
472 views

Wage regressions: Nominal versus real wage

I'm wondering do I need to convert nominal wages to real wages when running wage equations using panel data sets? My dependent variable is log of wage and I'm looking at returns to education across ...
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1answer
59 views

Is Firing Costly in the US?

I suppose that it doesn't cost most firms much to get rid of cheap labor, and that high wage workers typically have contracts that imply high compensations in case of firing. But what about the ...
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1answer
715 views

Impact of government subsidy on labour supply

If the government pays a certain amount $b>0$ to every person who is not working, what is the impact of this subsidy on labour supply? How does it alter the reservation wage? Is your answer ...
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1answer
120 views

Should minimum wage be regulated for developing countries

I live in a developing country, where unemployment is at roughly 25%. There is a large divergence in population whereby skilled workers are typically active within in the manufacturing, finance, ...
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55k views

What is the difference between intensive margin and extensive margin in labor economics?

What is the difference between intensive margin and extensive margin in labor economics, or general RBC model, where we talk about labor-hours supplied changing with extensive margin or intensive ...
3
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1answer
140 views

What would happen if the entire world switched to the 4-day work week? [closed]

What would happen if the entire world switched to the 4-day work week? Specifically would someone's quality of life drop significantly in a developed or a non-developed country?
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1answer
174 views

Does Craigslist Reduce Unemployment?

If a substantial (though admittedly I have no idea how large) part of the natural rate of unemployment is caused by the job search, do more efficient means of communication create more efficient labor ...
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1answer
26 views

Guvenen et al: Earnings

Guvenen et al look at earnings shocks over time, and try to argue whether these are compatible with standard career-ladder models with normal shocks. However, their data is no real shocks, it is time ...
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1answer
61 views

Extensive Labor Margin and Full Insurance

Extensive margin models use Rogerson (1988) style lotteries in order to simplify the savings problem under non-full-insurance. However, one could still write down the model in that style but instead ...
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1answer
74 views

Distribution of Wages

Is there any paper that looks at the distribution of wages? I'd like to see how many workers are in each percentile of labor income. I know that you could compute it using CPS or US tax data, but I ...
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1answer
157 views

Employment Volatility and the Relevance of Aggregate Wage Rigidity

The Mortensen-Pissarides (MP) framework of search labor is the thing in analyzing (equilibrium) unemployment over the business cycle. Shimer showed that the lack of hires is the big margin that ...
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3answers
2k views

Under what conditions is a monopoly undesirable?

First of all, I realize that "undesirable" is an ambiguous term. So, to clarify, when is a monopoly undesirable under the following metrics? Pareto efficiency Reduces consumer surplus Social Welfare (...
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175 views

Whatever happened to efficiency wage theories?

Older macroeconomics texts give much space to efficiency wage explanations of how unemployment could coexist with wages in equilibrium higher than the reservation wage of workers. However, there ...

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