Questions tagged [wages]

The remuneration/ price of labor, analogue to profits and rents.

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Other option to compute regions wages in real term in the UK (Urgent!) [duplicate]

Is there any good indicator that can replace region CPI in order to deflate workers income. I have tried to get the data from the ONS in the UK but they only contain the data for England as a whole ...
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Rigitiy stickiness of wages and how it relates to goverment during a recession

"explain why the wages in an economy are downward rigid/sticky but not upward sticky. How does this rigidity/stickiness help to explain why the government is more likely to try to stabilize the ...
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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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65 views

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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Question about migration wages

I have a question with the following statements. Adding the gains to the Home economy from the Foreign workers, we end up with the triangle ABC, which represents the Home gains as a result of full ...
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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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1answer
46 views

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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129 views

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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Calculating real wage in the previous year?

If in the base year the real wage is $.489, inflation in previous year was 5.8% and total wage growth was 13.5%, what was the real wage one year ago? I know at the base nominal wage = real wage. Thus,...
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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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28 views

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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93 views

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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40 views

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 ...
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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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1answer
59 views

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 ...
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2answers
444 views

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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Economics of disparity in wages and in 'financial quality of life'

I am seeking a quantitavely and logically satisfying answer to the question I will outline below. It could be in a form of a book/article reference and ideally have as little ideological bias as ...
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In a mixed economy like the UK to what extent are wages a function of Government policy?

In a mixed economy like the UK to what extent are wages a function of Government policy? Presumably at the bottom of the pay scale the minimum wage could be said to be a function of Government. And ...
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How is labor demand measured?

For instance, in the introduction of this paper (first paragraph), talking about Figure 1, they say that labor demand is measured as the real wage bill normalized by population. Is it common to ...
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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?
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Is there any reliable data on what % of the UK population currently earn less than £17,300 annually?

According to the Living Wage Foundation the "real living wage" in the UK is £9 an hour Which assuming a 37 hour week & rounding to the nearest whole GBP amounts to £17,375 Formula used ((9*37)/...
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171 views

Reference request: Gender wage gap / Minority wage gap

Disclaimer: I am neither a social scientist nor an economist. I hope the ESE is the right place to ask this question. Disclaimer 2: I do not intend to spark an ideologically driven discussion here. ...
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What predictions do economic models make for an economy where 50% of the population earn less than the cost of living? [closed]

These are the admittedly somewhat disparate pieces of information gleaned from separate sources that the question arose from. According to The living wage foundation the real cost of living in the UK ...
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Is the mode of wage distribution a meaningful economic indicator?

The Central Statistical Office of Poland publishes a report every two years, in which it diagnoses the labor market. Among other indicators, they publish the mode of the distribution of wages, in ...
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Best financial model to proportionally distribute the company's income to all employees?

I'm planning to start a project of something "innovative". And among some of the parts of the project that I'm thinking about, it's in the term of how money (profits) should be distributed. The truth ...
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CEO Compensation in Banking Data

My main goal is to compare CEO compensation for banks across different countries. Does anybody know where I can find data on CEO compensation for banks for different countries or a paper which ...
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How can the number of hairdressers in the UK be up 50% since 2010?

In this recent article, The Economist argues that one of the reasons behind the anaemic recent wage growth in Britain is that the recent job growth has been concentrated in lower-productivity jobs and ...
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272 views

Empirical explanation on divergence between productivity and wages since the 70s

There is a well know graph, that shows a tight link between productivity and wages, until the 70s, and a break of the link since: There's a lot of possible explanations for this, I keep hearing more ...
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Does it make economic sense for only some universities in a certain area to pay their sports scholars?

Apparently ‘Athletic scholarships are common in the United States, but in many countries they are rare or non-existent.’ But are there countries where there are some universities that offer sports ...
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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, ...
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How Africans use their wages?

I was researching poverty in Africa and was reading about their daily wages. Based on the article linked, 2/3 of Africans live on less than $1.25 USD, a day. However, what this article and many ...
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Should mean wages increase with inflation?

Should mean wages increase with inflation? If not, why? Has this profound consequences in the redistribution of wealth? (not an expert in economics...I apologise is the question is too naif)
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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 ...
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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 = \...
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Real wage stagnation and union membership

In the United States, wages in real terms have seen very little change over approximately five decades: (source: http://www.pewresearch.org/fact-tank/2014/10/09/for-most-workers-real-wages-have-...
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Can real wages increase (practically) without inflation?

It has been suggested that a strong economy will raise wages for all. However, I suspect that this can occur in only a few ways. First, assume that the wealth distribution in the U.S. is such that a ...
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Why real wage equals marginal product of labor when return to scale is constant?

I can understand that real wage will equal MPL(marginal product of labor) when MPL is diminishing, because firms will employ more labor until MPL falls to real wage. While, if MPL is constant, ...
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Are expensive cities economically threatened by an inability to house low-income workers?

Cities like New York, San Francisco, and others enjoy booming local economies that support high-paying jobs in industries like finance and technology. This and other factors have driven the price ...
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Where/What should I search to find the big companies annual paid salary information?

I want to know how much salary paid by apple in 2017 to whole employees. Also the details of other payments of the company(How much they paid for raw materials for example). Also like to know these ...
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Putting a Price on Happiness

When I was in college, a classmate of mine working two jobs mentioned that his/her job working at at a local fast food restaurant was causing undue stress and dissatisfaction. My response was to ask ...
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Why are different currencies able to purchase different amounts?

I am baffled by this for so many years! Kindly, explain this in layman's terms (i.e. to a guy who never studied economics at a university): I can purchase one dozen of eggs for €3.52 in Frankfurt, ...