Questions tagged [wages]
The remuneration/ price of labor, analogue to profits and rents.
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For my bachelors, would it make sense to use C+G (as Consumption + Government Expenditure) as an indicator for the prosperity of the economy?
Because G is also really just consumed by the people, wouldn´t it make sense to measure all the things that people consume to measure the prosperity of an economy?
At the end of the day, people in an ...
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In Solow model, on the balanced growth path, why aren't wages zero?
According to this primer on the Solow Growth model, wages are equal to $w = \frac{\partial Y}{\partial L} = A \left(f(k) - f^{\prime}(k)k\right)$.
In the balanced growth path we know that $\dot{k} = 0 ...
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Where can I find data on of total labor costs of a company vs their profits/return to capital?
I'd like to find out how much a company spends on labor (wages, benefits, tax-withholding, etc).
Is this information available on, e.g. yahoo finance or similar websites or in some standard reports ...
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Why did the pay of CEOs decrease around the year 2000?
According to the book I'm reading (*), the pay of CEOs tends to increase because the divorce between ownership and control allows for abusive compensation practices by the CEOs. Indeed, in the graph ...
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Why in Italy and Spain, as productivity grows, wages don't grow too?
As you can see in this report: https://rpubs.com/lovepeacejoy404/crescita_salariale between labor productivity and the average wage there is a correlation of 76% (Pearson index), while with the ...
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The relation between productivity and prices
I apologize if this is a stupid question, I am new/ an amateur in this field.
I am wondering, in what way productivity and wages are actually related.
If all labor was physical and I invented a pill ...
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Income and Substition Effect: Assumptions: Normality vs. Inferiority of Goods
A question concerning the income and substitution effect when the wage changes
Let us assume that the substitution effect leads to more less leisure as the relative price of leasure increases, and ...
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A question on Marx' "Value, price and profit"
In his lecture Value, price and profit Karl Marx argues that profit is made by capitalists by (i) selling commodities for their real price (= real value expressed in money), (ii) paying the workers (...
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How can high automation dependence and abundance in energy affect salaries?
Let's assume that we could find a very cheap source of energy that the cost of energy drops to say 1% of its current value. And let's also assume that automation and robots advanced to a level at ...
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India hourly/daily/weekly wages data
I am trying to find wage data on Indians. In particular, I want to find relatively new information on the average daily/weekly/hourly (slight preference for the weekly, but could live with any ...
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How is potential experience usually measured in the Mincer equation?
Wikipedia specifies the Mincer equation like this:
$$\ln w = \ln w_0 + \rho s + \beta_1 x + \beta_2 x^2$$
and states that $w$ is wage, $s$ is years of schooling and $x$ is potential experience.
...
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Why pay a 13-month salary instead of just increasing base pay?
In many countries, it is either compulsory or customary to give out a 13th salary at the end of the year, equal to the monthly salary the rest of the year. There are plenty of historical explanations ...
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Finding data on high paying jobs
This is a pretty beginner question. My background is in pure mathematics, and I know statistics and R, but no economics.
It might be a bit much tagging this as a data request question since I'm trying ...
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Doesn't it make sense in terms of economic security for tech companies to support unions?
It seems to me looking across (modern) history that the biggest threat to monopoly is government intervention. It certainly seems true in present times when you have many politicians on the left ...
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What (and how) to control for in adjusted wage-gap regressions?
Background: The unconditional wage gap between some group and the rest is often estimated using a regression of the form
$$
w_{it} = \alpha + g_{it}'\theta +\epsilon_{it}
$$
where $w_{it}$ is log of ...
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Why does the wage-price spiral of inflation exist, why do high wages/high prices not balance out?
Today's NYTimes newsletter wrote the below
Consider wages: If people expect high inflation, they will demand higher pay. But to pay higher wages, employers are likely to pass that cost to consumers ...
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Did online learning affect the returns to education?
I am interested to know if online learning during the pandemic affected the returns to university education. Anecdotally, education quality suffered from online learning, I wonder if this harmed ...
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Why is human capital per worker multiplied by wage per worker?
I am studying a paper entitled "The Past and Future of Knowledge-Based Growth" by Strulik et al (2013) where the budget constraint is written as:
$$w_{t}h_{t}(1-\tau n_{t})=c_{t}^{1}+s_{t}+...
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How does inflation erode away debt in a practical sense?
Intuitively it makes sense that if inflation is above nominal interest rates, businesses/central banks can erode away their debt. I wanted to understand how it would work practically such as in some ...
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Wages are lower than 30 years ago in Italy, why?
Recently I've seen some statistics about wage growth in the European Union in the last 30 years and surprisingly, Italy is the only country with a negative value.
So, what is the root of this problem? ...
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The CORE team's writings about labour productivity, real wages, markup and the price-setting curve
I've been reading the free online economics handbook that's developed as part of the CORE-project (here). The book is a refreshing read, but I'm struggling to follow their discussion of the price ...
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Wages historical data
I would need some free data on both average real and nominal wages growth rates for a panel of 100 countries from post war to current . I have looked at the world Bank, UN and ilo but the series is ...
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Nonlinear Least-Squares Estimation in Practice
I am reading Jeong, Kim, Manovskii 2015 and in the paper they apply "a nonlinear least-squares method" to estimate a log-wage equation, , where $D, \Pi$, all $\lambda$s $\theta$s, and $\...
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Percentage increase of the price of a good if there is a pay raise
I have a question about the percentage increase of the price of a good if there is a pay raise given to the firm's workers.
I am reading economics for my own personal interest so I apologise if there ...
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Nash Bargain VS. Rubinstein Game with Outside Option
I am reading a paper, Kessier & Lulfesmann 2006, and find that its main result totally depends on that the model setting is based on a Rubinstein game with outside option rather than a Nash ...
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Literature recommendation
Classic economic theory suggests people earn wages according to their productivity. Over time CEO's, directors, managers and the like seem to earn more relative to the 'normal worker'. Lets call this ...
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I don't know why these two method yield different solutions for marginal product of labour
Given a homogeneous of degree one function
$$Y=F(K,N) \\
y=\frac{Y}{N}
=F(\frac{K}{N},1):=f(k)$$
I am looking for the partial derivative for $N$
Method 1
$$F_N=\frac{\partial F(K,N)}{\partial N}=\frac{...
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What is the implication of perfectly reversible capital?
I am reading the lecture note in labor economics by Acemoglu and Autor. In the chapter of basic search model, they assume capital is perfectly reversible, and argue that "Perfect reversibility ...
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real or nominal GDP to compare to wage price index?
The recent Australian budget projects trends over the next four years. I'm looking at a summary here. If I want to calculate the share of GDP going to wages, should I compare the percentage changes ...
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Competitive wages under imperfect information
Do competitive wages always have to be defined by marginal productivity? Can we have competitive wages which are not based on productivity, when the information is not perfect?
To put it in context, ...
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Derivation of wage rate from nested CES production function
could anyone please help to explain how equation (4) in this paper is derived? I understand that it's an application of first order conditions using the chain rule from equations (1)-(3), but the ...
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What is the term for workers who outputs more than other workers at the same wage thus depressing wage for others? [closed]
What is the specific term for this worker:
A worker who outputs more than other workers at the same wage, therefore now the owner doesn't have to pay workers as much since he gets the same total ...
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What are some reasons why CEOs make 200-1000x as much as post PhD researchers?
Even the most monetarily effective Post PhD Researchers make at most a couple of million dollars over the course of their careers, whereas CEOs can earn over 1000x more over the course of theirs even ...
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Can you prove, and with what assumptions, that a market will allocate some minimum amount of basic resources to every worker?
I'm looking for a summary/less technical answer, as I'm not very well versed in the details of economic theory. I'm curious if there is some way to show that under some circumstances in a market ...
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What's the logic behind dividing rental price of capital and wage rate by price level?
I've just started to learn macroeconomics and I think even the teachers can't get what's the price level and why we divide by it in order to find for example real economic profits.
Textbook says "...
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Did real incomes drop significantly since the 1950s?
From what I heard, in 1950s America, you didn't have to go to college to support a large family and a stay-at-home wife. People could buy houses easily, drove giant cars and didn't worry about gas ...
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What does Smith mean by "price of work" in this context?
I've read these excerpts from The Wealth of Nations multiple times:
In reality high profits tend much more to raise the price of work than high wages
In raising the price of commodities the rise of ...
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What does Adam Smith mean when he says wages are determined by: "advancing, stationary, or declining state of the society."
I'm reading the Wealth of Nations. Smith explains in Book One that wages for labor are determined not by how wealthy a nation is but rather by its rate of growth. At the end of chapter seven he ...
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Price Changes in Factor and Product Markets
I think something is wrong in my reasoning, and I can't really find out what it is
Lets say the supply of labor decreases in a market. That would mean that the wage rate would increase in that market....
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Real wages fluctuation as per classical economics
I have just started studying Macroeconomics and have noticed that as per the Classical economics, the real wage level will always remain same because any change in price level in the market is ...
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Negative long term effects of wage cap, especially on purpose of money?
It can be figured that a wage cap could have some noticeable short term effects - mainly, those who are higher paid will not receive as much money anymore, meaning less spending by the richest in the ...
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Effects of increased income over short and long run in AD-AS equilibrium model
I've read in a few places that increased income/wages shifts SRAS to the left, which makes sense because firms' costs are increasing to pay for them. My textbook says that there's no effect on ...
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BreakEven/productivity/salary/employees
If employees’ salaries are increased by 20%, what is the increase in productivity required to break even?
Can someone assist me in solving this question?
Productivity = (output per period)/(number ...
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How much average value does 1 working hour produce? ( are there reliable statistics?)
This is a non-economist's question.
As a philosophy teacher ( in a french high school) , I have to study the theme of " labour" in class. I'm looking for factual data in order to assess the ...
user25248
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DSGE model with agents that develop their skills
Are there DSGE models with agents with different skill levels (and according wage differences) who can develop or lose their skills and with employees with dynamic/changing skill levels and skill ...
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Comparing cost of living of one state with that of other states [closed]
In the past I read something like this:
If basic expenses for family went from 100€ to 200€ but its wage
went from 200€ to 400€ it can expend more than before.
Weighting the costs of living ...
user24868
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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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In this price model, employment grows with higher wages. Makes no sense
Using a Sraffian price model we have that, $p=(1+r)(pA+wl)$ where w (nominal wage rate), r (average profit rate) are scalars; p (market prices), l (labor input coefficients) are vectors; A (producers' ...
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How is real wage growth achieved?
Someone asked a simple question: when wages increase, why don't companies just raise prices such that it cancels out the wage increase?
Of course, this isn't what happens in real life since real wage ...
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Why equilibrium efficiency wage maximizes worker effort per dollar wage
In the Keynesian model,
to make as much profit as possible, firms will choose the level of the
real wage that gets the most effort from workers for each dollar of
real wages paid
Source: ...
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