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 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 ...
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28 views

How to overcome measurement error in variable for immigration year?

I'm using the Current Population Survey and studying immigration. There's a variable: Year of Entry into the United States for the Foreign Born. The survey is administered to a representative sample ...
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41 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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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 ...
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2answers
134 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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104 views

How does Austrian Economics define Labour Productivity?

Is there a specific Austrian definition in accordance to the concept of Labour Productivity? If Labour Productivity is too broad of a term, then I will qualify to be speaking about it in context of ...
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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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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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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
81 views

Does brain drain really affect a nation's growth trajectory?

Take India as an example. India has been losing most of its bright minds to the west. India also ranks low in development. I would like to get a definitive answer to this cause-effect type question. ...
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533 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. ...
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132 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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37 views

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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1answer
1k views

Marx: Relative and equivalent-form. Difference?

I don't understand the difference between the two. For example: 2 Shoes = 3 wood Now Marx says that the first is the relative-form and the second is the equivalent-form. So the use-value expressed ...
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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?
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77 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 ...
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2answers
79 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 ...
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1answer
140 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 - ...
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157 views

Do machines reduce labor… or so they redistribute, alter, and globally increase labor?

John Stuart Mill famously remarked that labor-saving machines have not saved one minute of labor. More seriously, Marx argued, roughly, that machines can gain temporary market advantage, but cannot ...
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1answer
318 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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2answers
25 views

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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1answer
18 views

Unemployment Rate Volatility

Is there a statistic that describes the “churn” in the unemployment rate i.e. how many became unemployed compared to how many found work? I’ve heard of unemployment volatility (https://www....
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36 views

How to set a minimum wage

How does a country set an optimum minimum wage, i have went through loads of website but none of them give me a satisfied answer. For example, median of a country's income, percentage of GDP and such ...
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93 views

Productivity and wages in a task-based model

In a task-based model like the one developed in Acemoglu&Autor 2011 with two types of worker, can the low type have a higher wage with respect to the high type? More specifically: if the ...
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1answer
72 views

Would the military be more efficiant if they were unionized?

I hear about the extremely long work hours in the army. I understand it hardens them for readiness for combat situations. With the technology and increase of intelligence need to operate it would a ...
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1answer
110 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 ...
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1answer
77 views

Is the study of the volunteer sector inappropriate for a labour economist?

In the basics of labour economics the driving factor for increase in labour supply (for the workers in a given market) is increase in wages. The volunteer sector consists of general and skilled ...
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1answer
133 views

Division of labor vs division of work

Some authors makes the difference between these two terms. Could somebody explain what is the difference between division of labor and division of work?
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11k views

Finding labor supply function from equation of labor market [closed]

The supply side of the labour market is given by the following set of equations: Utility of worker is given by $$U = L^{\frac{1}{2}}C^{\frac{1}{2}}.$$ Real wage $w = 5$, T-Max = 40 hours, Investment ...
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1answer
79 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 ...
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1answer
27 views

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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1answer
21 views

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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1answer
72 views

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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1answer
29 views

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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1answer
49 views

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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1answer
24 views

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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1answer
25 views

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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1answer
38 views

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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1answer
25 views

How to account income from the informal sector?

Some context here. I'm from India and over here around 80% of the public work in the informal unaccounted sector. Yesterday, the main opposition party said that if they're elected, they'd compensate ...
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1answer
60 views

Hours worked increases with wage

So I have been given a utility function = $ 48 R + Ry -R^2$ where $R$ represents leisure hours and $y$ represents labour income. $y=rl$, $r$ is wage rate and $l$ is labour hours. Find hours worked ...
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1answer
143 views

Profit maximization question

Two firms are in a market together. They produce a product. Total revenue from sales is $y=K+L$ K is the amount of capital L is the amount of labor These two firms each specialized in supplying ...
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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
46 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 ...
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1answer
47 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 ...
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1answer
45 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 ...
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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 ...
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2answers
65 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 ...
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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 ...
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1answer
30 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 ...
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1answer
85 views

Equilibrium value of $b$ (market tightness) in a search model

Consider the following one-shot version of a labour market matching model. Let the labour force be normalized at 1, who, because there is only one period, all start out as unemployed. There is a very ...