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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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2answers
160 views

Differentiation of the value function in Burdett Mortensen (1998)

I'm currently making my way through Burdett and Mortensen's classic paper of on the job search. What should be an easy task of finding an expression for the reservation wage is made slightly more ...
5
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4answers
3k views

Labour Saving vs. Labour Augmenting - what is the difference?

It seems reasonable to say that technology generally increases output per unit of labour. Therefore in any factory which has installed new technology one can reasonably expect that for the same ...
2
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1answer
50 views

Structural Modelling of Expectations/Beliefs

I'm trying to build a structural model explaining the job search process by the job-seeker. One of the crucial component of job search, that i want to model, is the expectation about the employer. So ...
2
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1answer
131 views

What economic factors should be considered in attracting suitable staff and determining pay for temporary project work?

Getting qualified workforce for temporary projects can be difficult. If found from within the organisation, they may have to abstain from their regular work, and this may create additional ...
1
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1answer
37 views

How is it traditionally defined the minimum wage legislation in economics?

How is it traditionally defined the minimum wage legislation in economics? And which countries does not have a minimum wage legislation as defined in these terms?
3
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1answer
261 views

Slutsky Decomposition of Given Labor Supply Model

Let utility curve an individual given as $U(C,R) = C^aR^{1-a}$ where $(0\lt a \lt 1)$ and $C$ denotes consumption commodity and $R$ denotes its leisure, and price of $C$ is given as $P$, and the ...
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1answer
43 views

“Normal” vs “actual” variables in empirical work

In an early OECD study by Deppler and Ripley (1978), the authors distinguish between output per man hour, $OMH$, and what they call "Normal" output per man-hour, $NOMH$. (table 2, p152) At no point ...
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2answers
44 views

Effects of Robotics on the overall marginal propensity to consume

Basically we know that poor and middle class workers have a high marginal propensity to consume as compared to rich people. Assuming that all of their jobs will be done by robots, and only a few ...
1
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1answer
72 views

Theoretical/Empirical Arguments for Migrant Workers in the US

Consider the events that are developing in the US with regards to labor-intensive manual work and migrant workers. If more and more migrant workers are banished from the work pool, it remains a highly ...
2
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1answer
44 views

Effects on transit system shutdown based on local workforce end-of-day times?

I'm curious if there are any studies based on logistics and economics of shutting down the bus/transit system before the general population's working class can go home. For example, the small town I ...
3
votes
1answer
305 views

Exam question implies that a perfect labour market can have wage differentials?

My understanding is that wage differentials should not exist in a perfect labour market for occupations, but the following exam question seems to imply that this can be the case. A brief marking ...
1
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2answers
75 views

Literature request: Any articles on the signalling theory / game theory / asymmetric information of the firms' recruiting process?

I'd like to read more about the recruiting process of firms. Signalling theory and game theory can be a useful tool to better understand this phenomena. For example: Applicants, who ask for higher ...
0
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1answer
57 views

Understanding the effects of government deficit on international trade

Understand that I'm a total novice with regard to economics. Also, while I ultimately have an axe to grind (doesn't everyone?) I'm not trying to do that honing here, I'm simply looking for a sanity ...
1
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1answer
105 views

In a context of globalisation and high wage inequality, why should governments help unskilled workers?

With globalisation, wage inequality continues to be a strong issue for many developed nations. What I seek to find out here is, why should we even do anything to help the unskilled workers? From ...
1
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0answers
81 views

How can I model immigration and xenophobia economically using these equations?

I'm trying to put together a toy model for immigration ($I$), labor prices ($w$), and a measure of xenophobic/nationalistic sentiment ($A$). What I've come up with so far is the following: $$\frac{dI}...
1
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2answers
508 views

Are American poverty rates increasing? What about global poverty rates

http://www.npc.umich.edu/poverty/ https://www.census.gov/data/tables/time-series/demo/income-poverty/historical-poverty-people.html I have heard numerous times that the future has gotten better. ...
2
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0answers
174 views

Difference between Value-Added TFP and Gross-Output TFP?

I am working with EU-KLEMS data, and I am using TFP growth as a proxy for technological change. However, there are 2 variables for TFP - TFP based on Gross Output and TFP based on Value Added. I ...
2
votes
1answer
94 views

Question about skill-biased technical change, Acemoglu

I am writing about skill-biased technical change, and in particular the 2001 Acemoglu (http://economics.mit.edu/files/283) paper on the topic, in which there is a part I am very stuck on. In the ...
2
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2answers
101 views

Do wages differ in two perfectly competitive labour markets?

I understand that within a single labour market, the wages would be the same between two workers as firms and workers are both wage takers, but what about when there is more than one perfectly ...
3
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3answers
600 views

Is the labor force participation rate related more to labour supply or to labour demand? Or both?

I have read several Labor Economics books, but I am stuck. Is the labor force participation rate related more to the labour supply or to the labour demand? If the labor force participation rate ...
-2
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1answer
77 views

Labor market supply optimization [closed]

How do I optimise this type of problem? I have read something about applying the chain rule to find the first order condition but can't imagine how to express it or solve it. Can somebody give me a ...
2
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1answer
192 views

Welfare analysis for a military draft

How would the welfare analysis of a military draft look? My intuition tells me that it would look similar to a price ceiling below the equilibrium, with the exception that suppliers (civilians) are ...
1
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1answer
129 views

Effect of changing Non Labor Income on Consumption-Leisure problem

Given a Utility function $U(c,l) = c - \frac{1}{2}l^2$ , where $c$ is the consumption and $l$ is the number of hours of labour. Let $L$ be the maximum amount of labor, so the amount of leisure is $L - ...
5
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2answers
136 views

When and why women left the labour market?

It is well documented that women in now developed countries entered the labour market all thoughout the 20th century. As such, female labour participation have consistently increased. For example, ...
1
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4answers
608 views

In GDP growth studies, are factors of production measured as stock or flows?

Consider the following cases: One machine (capital) is used by multiple producers within one year. For instance, farmers renting tractors from the same company. In this case, in terms of GDP, there ...
8
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0answers
293 views

Local and Central Wage Bargaining: What Is the Difference?

Consider the following setting: Profit maximizing firms with production functions $\Pi(w,L)$, where $w$ is the wage and $L$ is employment. Unions who want to maximize the expected utility of their ...
6
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3answers
152 views

Why don't prices of USA labor and Mexican labor equalise?

That Mexicans workers get paid less US workers is a dynamic which motivates the moving of production to Mexico. This idea can be abstracted to Developed Markets (DM) labor and Emerging Markets (EM) ...
1
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1answer
43 views

Revenue maximization same as increase contribution margins?

Under which condition, will it be the same whether you choose to use revenue maximization or to increase contribution margins? In what industry is this possible? In my thought process, I was ...
-1
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1answer
45 views

What is the maximal theoretically possible wage increase here and now (ceteris paribus)? [closed]

Labour unions are pushing for wage increase but what is maximal theoretically possible wage increase here and now - without restructuring production, processes and without introduction of new ...
5
votes
2answers
103 views

Minimum Wage effects on Adjacent Cities

When a city like Seattle raises the minimum wage to 15/hr, how does it affect the labor market in adjacent cities? Are there examples, studies or accepted practices to address: Difficulty staffing ...
1
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1answer
43 views

Directed search with privately informed buyers and capacities

My question seems to be a basic one and there should be a rather well-known reference in the (IO or labor) search literature. I will upvote (and comment on) any relevant answer and I will accept an ...
4
votes
1answer
148 views

Endogenous Gentrification and Rates of Return to Education

Gentrification is, roughly speaking, the displacement or exclusion of poor people from areas with improved amenities due to higher rents and costs of living. The question I have is whether better ...
2
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1answer
53 views

Why does the Federal Reserve seem to hold so much weight on the unemployment rate, relative to labor participation?

The title is the question. In the press conference held yesterday, the Chair referenced "unemployment" 18 times, relative to "participation" 3 times. If the labor participation is at the lowest ...
7
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1answer
87 views

Testing Roberts's Law: data request on CEO pay and company characteristics

I posted here regarding sources for Roberts's Law. In this paper it gives a clear qualification of what Roberts's law is. (Page 9, ...Cross-sectional prediction..) ..In a given year, the ...
1
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1answer
50 views

Restrictions on goods and capital, but freedom of labour movement

I recently had a discussion with a left-wing friend in the UK about about Brexit, and the possible repercussions of restriction of labour when the UK leaves Europe. He argued that as someone who is ...
0
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2answers
649 views

Why are vacancy rate and unemployment rate negatively correlated?

Why is this the case? Since Vacancy rate is defined as following, let $A,Q,U$ denote number of vacancies in the economy, labor force, unemployed respectively. $$\frac{A}{A+Q-U}$$ Here we can see ...
2
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0answers
18 views

References for estimating lifetime earnings lost due to caregiving (health economics)

I am working on a project on the productivity costs for caregivers of people with Disease X, a degenerative disease that affects mobility over time. I am looking for references, either scholarly ...
1
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2answers
61 views

How to explain these two discrepancies between BLS OES wage data and salaries of pro athletes?

I refer to the Occupational Employment Statistics published by the US Bureau of Labor Statistics, May 2015 edition. Under occupation title "Athletes and Sports Competitors" (27-2021), we have the ...
2
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0answers
11 views

Why is three weeks of increasing jobless claims significant?

I see stories like this one on occasion in my news feed. http://www.bloomberg.com/news/articles/2016-10-27/jobless-claims-in-u-s-decline-for-first-time-in-three-weeks Mainstream news outlets never ...
3
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3answers
4k views

What are the causes of increase in productivity of labour?

This question has a specific context. While reading Adam Smith's The Wealth of Nations, edited, with notes and marginal summary by Edwin Cannan in 1904, one comes across the following lines on the ...
3
votes
1answer
993 views

Sample weights in Stata: fweight vs. pweight

I'm working with IPUMS ACS and Census data in Stata. I'm interested in learning about income distributions and variability for specific subpopulations defined by education level, occupation, race and ...
1
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0answers
47 views

Can the Goodwin Model of cyclical labor growth be applied in a micro context to specific industries?

I have been doing a bit of research into the Goodwin Model (1967), which generates cycles of economic activity. I understand that this is mostly used in macroeconomics. However, I am curious if this ...
7
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2answers
96 views

How can median wages be significantly different in two neighboring countries with open borders?

As an example, take Germany and Czech Republic. Both are members of the EU and therefore trade barriers between the two countries are minimal. However the median salary in Germany is nearly 3 times as ...
1
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0answers
33 views

Formal terminology for positive and negative correlation between ability of workers for different jobs?

Say there are two occupations - A and B, and plenty of workers. Let's pick occupation A, and order workers from lowest to highest ability/productivity. Which is the formal term to describe the ...
2
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4answers
976 views

How does the professional class fit into Marx and Engel's class struggle theory?

I know that in the first part of The Communist Manifesto, Marx and Engles discuss at length the relationship between the Bourgeois and the Proletarians. The former being the owners of the means of ...
0
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1answer
29 views

Studying growth in US and Sweden, what variables should I watch out for in a regression? [closed]

I've be assigned a project on growth paradigms in US vs Sweden as part of my introductory course in econ. Can somebody please help me out with regression ideas?
9
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1answer
476 views

What are the economic perspectives regarding the game of salary negotiations?

Apologies if I use non-economic language to explain what I suspect is a practical application of economics. I have no formal education in economics whatsoever but hoping you guys/girls might be able ...
1
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1answer
24 views

What are the different patterns/quantity of employment according to demands of different income ranges?

I don't really have that much knowledge on economics or anything, so perhaps that's something I'd find an answer if I just knew the adequate terminology. Rephrasing/explaining my question: different ...
1
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1answer
27 views

Controling the level of hours worked in the multiplicative formulation of KPR

KPR preferences are generally given by $$ \frac{c^{1-\sigma}}{1-\sigma} \cdot v(l)$$ with $l$ being leisure. Let's focus on the case where $\sigma \in (0, 1)$, where we know that $v(l)$ must be ...
0
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1answer
8k views

Why does the real wage = W/P?

Im reading about labour markets, and the notes mention that the real wage 'w' = W/P, where W = the nominal wage, and P = the price level. Could someone please use some 'W' and 'P' as an example to ...