Questions tagged [wages]

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

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29
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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 ...
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5answers
2k views

Why are real median household incomes stagnant?

This image shows US real median household income. It seems remarkable for its lack of growth over the last 20 years. This has been the subject of much political debate (around the "1%" and "occupy ...
13
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5answers
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Econometrics: Is elasticity meaningful in my, or any, regression?

A few months ago I interned at this organization; and, as a going away present, I decided to spend my last week, with whatever off time I had, to investigate the factors that affect teacher salaries. ...
10
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3answers
676 views

In the US, do high wages in regions like New York and California offset the high cost of living?

It's well understood that the cost of living in New York City vastly exceeds the cost of living in, say, rural Louisiana. It is also well understood that wages in New York City vastly exceed those in ...
9
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3answers
315 views

Causes of income inequality in the US

I read an article in BusinessWeek that talked about income inequality in the US. The article attributed the difference to the Intel chip that came in 1971. Since that time big hi-tech companies have ...
9
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5answers
4k views

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 (...
8
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4answers
2k views

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 ...
7
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2answers
96 views

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 ...
6
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6answers
431 views

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 ...
6
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5answers
183 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, ...
5
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2answers
105 views

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 ...
5
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1answer
194 views

Minimum wage vs wage subsdies

Many politicians argue that the minimum wage is essential for providing an sufficient standard of living to all. However, there are many issues binding price floors predicted by standard supply and ...
5
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1answer
307 views

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 ...
5
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2answers
121 views

How come the average studio rent in Vietnam is bigger than the average salary?

A studio in Ho Chi Minh city center : roughly 500 USD/month Average salary in Vietnam : 300 USD/month I have noticed the same thing in other "poor" countries : a studio rent is so expensive compared ...
5
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2answers
596 views

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-...
5
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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 ...
4
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3answers
153 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. ...
4
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2answers
205 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 ...
4
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1answer
307 views

Adverse selection in competitive markets- labor market

I'm referring to the Figure 13.B.1 titled 'A competitive equilibrium with adverse selection' from 'Microeconomics Theory' by Mas Colel et al. It basically graphs the expected value of the workers' ...
4
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1answer
97 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 ...
4
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0answers
68 views

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 ...
4
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1answer
74 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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2answers
235 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 ...
3
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2answers
65 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?
3
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3answers
231 views

Why do rich countries remain rich?

I can think of two possible explanations: People there inherited the wealth of their ancestors (and of the companies of their generation). Advances in technology allows you to earn money more easily. ...
3
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1answer
147 views

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 ...
3
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1answer
456 views

Wage regressions: Nominal versus real wage

I'm wondering do I need to convert nominal wages to real wages when running wage equations using panel data sets? My dependent variable is log of wage and I'm looking at returns to education across ...
3
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1answer
291 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?
3
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1answer
369 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. ...
3
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1answer
72 views

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 ...
3
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0answers
77 views

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 ...
2
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1answer
163 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 (...
2
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2answers
98 views

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 ...
2
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1answer
163 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 ...
2
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1answer
28 views

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 ...
2
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3answers
40 views

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 ...
2
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1answer
140 views

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 ...
2
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2answers
107 views

Does the H-1B visa program have the effect of reducing wages in the U.S

In either the short or long term, does the H-1B visa program have the effect of reducing wages in the U.S. for U.S. citizens?
2
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1answer
26 views

Guvenen et al: Earnings

Guvenen et al look at earnings shocks over time, and try to argue whether these are compatible with standard career-ladder models with normal shocks. However, their data is no real shocks, it is time ...
2
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0answers
44 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 ...
2
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0answers
144 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 "...
2
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0answers
68 views

Professors Salary vs Alumni Earning: is the relation causal?

Elyase İskender posted in his blog an interesting plot correlating Professors Salary and Alumni Earnings Relation in US Universities. Is there a good way to establish causality here? Did the highest ...
2
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2answers
148 views

Has income inequality ever been solved in societies in the past in terms of what people make to cost of living? [closed]

One thing I've seen many on here whether life style is increasing or poor's wealth is, income inequality in terms of things like food, water, healthcare keep going up, but wages aren't keeping up. ...
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2answers
175 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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2answers
54 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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1answer
63 views

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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1answer
75 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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0answers
36 views

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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0answers
17 views

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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0answers
18 views

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 ...