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0answers
8 views

wage/productivity, what does it show

I just confused about the fact that does wage/productivity show the wage gap? So if wage/productivity is the wage gap then by the increase in productivity the wage gap should decrease as the ...
3
votes
2answers
61 views

Statistical distribution of wages and wealth

How are wages distributed globally? Wages do not follow a normal distribution, do they? Is wealth distributed in the same way or differently?
6
votes
5answers
175 views

Why do firms losing money almost always reduce labor costs via layoffs instead of pay cuts?

At least in the United States, firms seem to almost always reduce labor costs via layoffs rather than pay cuts. Pay cuts are so rare that they're literally headline news. From an economic standpoint, ...
4
votes
1answer
94 views

Labour Market: simple macroeconomic modeling

I just started reviewing macroeconomic modeling for an upcoming entry exam, and I'm not sure about my answers in this application: Suppose that the economy of a country has a representative firm ...
1
vote
1answer
25 views

How to calculate the optimal wage and the optimal rent on capital in an economic model?

In Dhondt & Heylen (2009)*, they specify a certain production function. Under some standard model assumptions such as perfect competition and so on, they calculate the optimal wage as $$ w_t = \...
1
vote
2answers
173 views

Marginal productivity, wages, and profits in neoclassical economics

In neoclassical economics a worker is paid the marginal product of what they produce. If this is true then what is the source of profits?
-1
votes
1answer
44 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 ...
29
votes
6answers
10k views

Why do celebrities get high wages?

In the youtube video Why We Look down on Low Wage Earners the author argued: "economics states that wages are determined [...] by the number of people willing and being able to do a given job that ...
5
votes
1answer
2k views

why is real wage divided by marginal product of labor often called real marginal cost?

As said in the title, why is real wage divided by marginal product of labor often called real marginal cost? In mathematical formula, $mc_t = (W_t/P_t)/MPN_t$ where $MPN_t$ refers to marginal product ...