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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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 ...
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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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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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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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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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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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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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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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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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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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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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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 ...
user24424
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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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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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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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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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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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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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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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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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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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Does recycling lead to fewer jobs?
Say I buy a glass bottle, I can either put it in the landfill or recycle it.
My understanding is, glass will breakdown into sand. (Not sure how well though, since we sometimes find glass from Roman ...
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The relationship between profit and wages
It seems obvious that an individual company increases their profits when they reduce wages or increase automation or some such.
But if wages fell universally because of this, wouldn't that decrease ...
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Why are there no minimum wage entry level IT jobs
In the UK, I have not seen any graduate level IT jobs offering a starting salary below £20,000. At the same time, about 10% of computer science graduates are unemployed six months after graduation. ...
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Are there any net benefits in reducing/increasing tourist-oriented retail business?
Hong Kong is currently experiencing a slump in foreign tourist-oriented retail sales. Shops selling jewellery, watches, infant formula or Chinese medicine experienced a 25-35% decline YoY in August.
...
user24498
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How do I adjust for heterogeneous labor markets when calculating the wage premium?
I have a dataset with mean and median wages for particular geographic areas around the United States. I am interested in calculating the wage premium between some areas. I can already do a simple ...
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Has contest theory ever been used to design real-world contests?
Contest theory, very much like auction theory, studies how people act in a contest and the properties of such a competition. There is a large literature that investigates different aspects of the ...
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Sign of income effect is ambiguous
When discussing the standard neoclassical model of labor supply, I have seen it is assumed that the sign of the income effect is ambiguous. Could anyone please explain this assumption, and more ...
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extensive vs intensive labor in US in recent decades
Total Hours worked is a mix of extensive (to work or not, the usual standard working week) and intensive (how many hours to work).
I'm interested in how this balance of extensive and intensive ...
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Why does trade depress relative wages?
I've read that increased trade tends to decrease relative wages of labor. What is the intuition behind this? Lower wages in labor imply lower demand for workers, but doesn't trade just encourage ...
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Does a trade union of YouTubers exist? [closed]
Would YouTubers see a sense in having a trade union?
For example, to establish policies how much the value of their contribution is.
The controversy here is, professional YouTubers make a bet for ...
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One Treated Unit That Becomes Untreated
Suppose I have a set of units $n_i, i = 1,...,N$. One unit was receiving a treatment $n_j = 1$ at times $t=1$ to $t=\tau$. All other units never received the treatment so $\forall t, n_i=0,i\neq j$. ...
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regression method for data that contain a number of observation for several years
I have a data set about 125 companies. For each company I have the salary and some other variables about the top 5 managers in each company.
One observation contains the top 5 managers in each one of ...
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Name of phenomenon where migrant workers receive decent wage but absolutely no chance of getting any government benefits
Not sure if the title reflects the question very accurately but my question is specific to the Gulf countries which have a huge population of migrant workers, like Saudi and UAE. So, let's say Raj is ...
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Could a "Japanese-style strike" work as it's supposed to? Under what conditions?
This is an urban legend, mostly believed in Spain and some countries in South America.
The legend is based on the premise that their way to make a strike would be to work much more than usual in some ...
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What is the trade-off between? Consumption and Leisure or Income and Leisure?
When first presenting the utility function and its arguments, textbooks typically start by stating that utility is a function of consumption and leisure. See for example https://sites.hks.harvard.edu/...
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Change in the marginal utility of leisure with respect to a change in consumption
I am reading a paper that derives a theoretical retirement model. There is a utility function and a budget constraint forming an optimal control problem. The solution to this problem states that
\...
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How is matching theory used in context of Marriage market difference in terms of which is used in context of labour and housing market?
I am looking for an overview as most of the introduction to matching talks about the work done in the Marriage market, Job Matching which is axiomatic. Then while looking at Labour and housing market ...
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Has there been an applications of search and matching theory in the Neoclassical Growth Model?
Specifically, I am looking for the standard neoclassical growth model, but the labour decision is based on either search or matching theory instead of a Walrasian labour mechanism.
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How are you supposed to calculate overhead expenses?
I'm doing a college assignment (creating a software product) in Computer Science and have been given a template for the part of the report about economics. At one moment it states the following:
<...
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Is it better for low-income people to live in the countryside where it's cheap or in the city where there are more services?
Supposing someone is struggling to pay the rent in an urban area, and they don't have anything tying them down to any one place, would it make sense to move to a rural area where the rent is much ...
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Does migration exacerbate (albeit delay) the problem of aging, economically-inactive populations in Western societies?
As a layman, I've always understood that there is a general consensus amongst economists that "immigration is economically beneficial" to rich Western countries (like Britain) who have aging ...
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Asymmetric Nash Bargaining
The Nash bargaining solution selects the unique solution to the maximization problem $\max_{s_1, s_2 } (s_1 - d_1) (s_2 - d_2)$ such that the solution satisfy the following axioms :
Invariance
...
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How exactly does removing labor market rigidities reduce structural unemployment and increase potential output in an economy?
Here I want to focus primarily on the potential benefits of labor market reforms such as a reduction in job security and trade union power and not their controversies. I wish to learn a few thoroughly ...
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Maximization problem FOC and Euler equation
Can someone please help me with the Lagragian and the derivation of the following objective function ? Beneath I provide the objective function, the constraint and the Euler equation that results from ...
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Looking for help with Solow Model Question [closed]
The question is this:
Suppose there is a production function of $Q=F(K, L)=\sqrt{K}\sqrt{L}$. Suppose that MPC=0.8 and the labor force is growing at a rate of 0.05 per year. Also labor force ...
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Search and matching model: effect of hiring cost on wage curve
What effect does the hiring cost have on the wage bargaining outcome (wage curve)?
In Cahuc, Carcillo, and Zylberberg: Labor Economics, they derive the following wage curve:
$$w = z + (y-z) \frac{\...
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Have any economics papers used unified cure models?
Does anyone know if there are unified cure models (aka split population models) in time-until-employment studies that combine the mixture cure approach with the promotion time approach as described in ...
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DMP Search Model - Terminology
In the most basic Diamond-Mortensen-Pissarides (DMP) model we have the variable $V$ which represents the present discounted value of expected profits from a vacant job. The corresponding Bellman ...
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