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Questions tagged [wages]

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

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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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43 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?
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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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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 ...
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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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24 views

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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39 views

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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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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2answers
49 views

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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1answer
23 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 = \...
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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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878 views

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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Maximum wage laws in mercantilist France

One John K Williams (1986) writes that in mercantilist France, The government actually imposed maximum wage laws. Any employer who paid wages above a legally defined ceiling was charged with an ...
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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, ...
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Has US real median personal/household income been stagnant since the late 1970's/early 1980's?

This is referring to an earlier question: Why are real median household incomes stagnant? How do the following graphs actually tell you that US real median personal/household income has been stagnant ...
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When countries industrialise, why do jobs from agriculture shift to manufacturing?

This is a historical trend whether it may 18th century Britain or 19th century America or what's currently happening in China. What I am confused is by the fact that manufacturing jobs such as ...
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1answer
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What economic factors should be considered in attracting suitable staff and determining pay for temporary project work?

Getting qualified workforce for temporary projects can be difficult. If found from within the organisation, they may have to abstain from their regular work, and this may create additional ...
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2answers
148 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?
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How would one model wage suppression from non-poaching agreements?

Motivating example: Google, Apple, Microsoft et al were recently fined $430 million for wage collusion and anti-trust violations regarding hiring of employees. Their employees were involved in a class ...
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1answer
139 views

Can an overall improvement in technology make the owners of one factor worse off?

In a closed two-factor economy, suppose there is a biased technological improvement that increases the productivity of both factors, but one more than the other. Can this reduce the aggregate returns (...
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Productivity vs real earnings in the US — what happened ca 1974?

Somewhat related to the most recent US elections, I've been researching the whole "white working class" situation, and one strange anomaly has popped up. When one looks at a graph of productivity (...
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Do minimum wage laws bring more bad than good? [duplicate]

Let me begin by saying I know nothing about economics. In the past couple of days I've been listening to some lectures by Milton Friedman. They are of non-technical nature. In one of them he makes an ...
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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 ...
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2answers
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Minimum Wage effects on Adjacent Cities

When a city like Seattle raises the minimum wage to 15/hr, how does it affect the labor market in adjacent cities? Are there examples, studies or accepted practices to address: Difficulty staffing ...
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1answer
279 views

Are real wages a good measure of economic progress?

Why do we tend to use Real GDP Per Capita instead of the real wage? What is the issue of using the real wage instead?
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Why must the wage barganing be derived at steady-state?

In wage bargaining theory, in the context of matching theory, firms and workers can negotiate a Nash equilibrium by maximizing a function of firms' and workers' surplus - with the purpose of allowing ...
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How can median wages be significantly different in two neighboring countries with open borders?

As an example, take Germany and Czech Republic. Both are members of the EU and therefore trade barriers between the two countries are minimal. However the median salary in Germany is nearly 3 times as ...
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Could indexation of wages help Argentina?

In Argentina we experience one of the largest inflation rates of the world.(please click the top of the inflation rate column to order by inflation rate). This is a large problem that causes stress ...
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66 views

How do the wages affect the employment

If we have a condition where employment is lead by the wages does it mean that a wage reduction will cause unemployment?
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330 views

How to adjust salaries of more than two countries to a common year given that the data was collected in different years?

I want to compare salaries of more than two countries. The data I am using is based on the Occupational Wages around the World (OWW) database. Let's say I want to look at the salaries of the nurse. ...
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Identify absolute ability from a wage equation

Consider a simple model where the wage of a worker $i$ in period $t$ is: $$w_{it} = \theta_{t} a_{i}$$ where $\theta_{t}$ is the wage rate or efficiency wage per unit of ability, and $a_{i}$ is the ...
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Reconciling low wages with high technology and high education

This is one example of many recent doom storied prognosticating that the "millennial" generation will be the first in (recent) history to experience lower incomes than their predecessors—at least in ...
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Interpretation of regression coefficients with and without logs

Say you want to estimate return to education. Model 1 (no log): assume the DGP is: $$w_{i} = \alpha + \beta x_{i} + \zeta_{i} + e_{i}$$ where $x$ is years of schooling, $\zeta_{i}$ is unobserved ...
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145 views

Value added by workers

Is there any empirical evidence on the value added by workers? That is, their "productivity" minus the wage payments, social security benefits etc. that are paid by the firm? I'm eventually looking ...
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1answer
70 views

Do Hong Kong highschool teachers earn more than Hong Kong quants?

According to Teach in Hong Kong, Hong Kong highschool teachers earn around HK\$23,530 to HK\$54,665 (approximately \$3,000-\$7,000 USD) per month while CUHK's Quantitative Finance Graduates Face ...
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131 views

Is the Austrian wage system bad for its economy?

In Austria, the law is forcing employers to pay 14 wages instead of the usual 12 (one per month) per year for almost every employee. More specifically, employees get a 13th payment around July called "...
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2answers
230 views

Who really benefits from economic growth?

In recent social protests, I have heard the claim that the economic growth benefits only the rich: they become richer while most people become poorer. To check whether this claim is realistic, I ...
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How does Ricardo justify this math?

In Ch 5, Of Wages, Ricardo tosses this gem: if the labour of ten men will, on land of a certain quality, obtain 180 quarters of wheat, and its value be £4 per quarter, or £720; and if the labour of ...