# Tag Info

8

A very famous study in this direction is Card and Krueger (1994). They look an increase in the minimum wage in New Jersey in 1992. While New Jersey raised the minimum wage from USD 4.25/h to USD 5.05/h, the minimum wages remained at $4.25 in adjacent Pennsylvania. You should have a look at the subsequent research. 6 The underlying reason for persistent wage differences is probably that Mexican workers are less productive than American workers. It is sufficient that workers in some tradeable sectors are more productive to have persistent wage differences in all sectors. (a good explanation of this effect can be found here: https://en.wikipedia.org/wiki/Balassa%E2%80%... 5 The whole point of the (specific) Labor Theory of Value that you apparently refer to, is that, what Labor "injects" as value into goods produced, is more than what Labor needs to consume in order to survive. This is a fundamental assumption/argument, in order to answer the question "how profits come about?". Then, since the theory argues that profits ... 4 I think we should ask why didn't Germany's labor cost increase, while everyone else's did: The eurozone had economic growth before 2008, so appreciating labor was expected, especially due to increasing labor mobility. Wages were converging to Germany's. In addition, Southern Europe saw an influx of capital (this is how they caught the debt crisis). Capital ... 4 The example you've picked is slightly complicated, because I think there are two possible reasons for the difference in price. Both could contribute at the same time, depending on your view of how wood production works in your example. 1. The labour value invested in growing, harvesting and processing better quality wood (prior to furniture manufacture). ... 3 This is quite a loaded question you asked here. I answered it in a few parts: first I introduce you to the idea of Robinson's economy, then I add a company to the equation (as you also asked about the wages$w\$). I am about to show you how to write this problem (and how to solve it) from consumer's alone, and then from both, firm's and consumer's points of ...

2

Normally when we think about value added, we think of marginal revenue product of labor: how much more revenue does adding another worker add to the firm? If you assume that the market is competitive, then the MRPL should be exactly equal to what you said: wage, benefits, etc. Otherwise another worker would be willing to work for an epsilon less. In other ...

2

Economic evidence on the effects of piracy is mixed. Most of the evidence focuses on the music industry, where piracy has been especially prevalent and where data is often more readily available. Some papers find evidence that piracy has little or no effect of industry profits (here is one prominent example). Other studies (example) find that piracy ...

2

I would emphasize Anton's last point. Many countries have regulations that prevent senior/tenured workers from being fired first. This quickly implies that as firings increase, average costs tend to increase (ignoring inter-firm wage dispersion). Or, in other words: Any country with a highly regulated labor market will tend to see increased labor costs as an ...

2

As others have noted, your "ceteris paribus" is not very well defined. If you only want to redistribute "here and now" all the profits to the workers, then you can use the "Kaldor fact" that the wage share is usually around 60-70% of GDP and thus profit share around 30-40%. This means that profit represents something like 40-60% of wages, if this is the ...

2

You should look at this county pairing methodology used by Dube, Lester and Reich (2010). http://escholarship.org/uc/item/86w5m90m The abstract: We use policy discontinuities at state borders to identify the effects of minimum wages on earnings and employment in restaurants and other low-wage sectors. Our approach generalizes the case study method by ...

2

It depends on which BLS numbers you look at For example in Table 2 of http://www.bls.gov/opub/mlr/2013/article/industry-employment-and-output-projections-to-2022.htm it gives for manufacturing output: Billions of chained 2005 dollars Billions of dollars 2002 2012 2002 2012 4,320.8 4,407.6 ...

2

Utility maximization problem in the question is: \begin{eqnarray*} \max_{c, h} \ & c + \sqrt{24-h} \\ \text{s.t. } & c = wh + y \\ & 0 \leq h \leq 24 \end{eqnarray*} We can rewrite the above problem as: \begin{eqnarray*} \max_{0 \leq h \leq 24} \ & wh + y + \sqrt{24-h} \end{eqnarray*} Taking the derivative of the objective with respect ...

1

Companies like Google and FB are talent focused. Turnover is high for a few reasons: 1). Because the employees tend to be VERY good at what they do, thus their opportunities are vast; and people tend to gravitate towards who pays the most. 2). Stress. 3). Contracts. Many employees in these big firms tend to only have short term contracts for specific ...

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The value embodied in the raw materials is transferred to the final commodity. So, it is not just the labour necessary to transform the raw materials that forms the value of the final commodity. Why does a ring of gold have a higher price than a ring of silver, even though the labour necessary to mold each metal into a ring is the same? Because the labour ...

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Similarly to how you mention that high salaries lead to the population being able to sustain a high cost of living, we can look at goods and services from the supply side. As the minimum wage and wages overall are very high in Switzerland, meaning high labor and input costs, high prices compensate for it. Furthermore, there is also an element of low income ...

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Characteristics of a "project", as per the Project Management Institute, are that it is temporary and unique (ie. non-routine). For a person employed to work on a project, the temporary nature of the work is likely to be a source of additional cost and risk, as compared with a person in a permanent job. This is because, as the project comes towards its end, ...

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Although they are non-profit organizations, they still submit legal documents such as statement of cash flow, statement of financial position, etc. These contain detailed information of the spending of such organizations.

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