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Any invention that replaces human labor puts an end to that specific task. Glass recycling eliminates (or decrease) the need for silica-gathering task. Typewriter eliminates the need for printing press typesetter. Etc. Those people whose tasks are eliminated will get reallocated to their most productive use. This might be in the form of job change (silica ...


4

There is a large literature on this, particularly in the context of labour markets. Some classic references: Becker (1957) analyses employers who care about making profits but also seek to avoid interacting with certain groups. One famous result is employer prejudice need not lead to racial wage gaps as long as there are enough non-prejudiced employers to ...


3

This is a subtle issue. First let's present a numerical example to see the head-scratching riddle. Assume $$\alpha =1/2 \implies Y = K^{1/2}L^{1/2}$$ and that the exogenously given input prices are $$r=1/8,\,\, w=4.$$ The f.o.c are $$\begin{cases} \frac {Y}{2K} = 1/8 \\ \\ \frac{Y}{2L} = 4 \end{cases} \implies K/4 = 8L \implies \left(L/K\right)^* = 1/32$...


3

A clarification: The values $w,r$ are not independent of input combinations: you have already solved for $K/L$. 1) Unless you assume that the price of the output is equal to 1, there is a minor mistake, as output prices affect factor prices. 2) If there is a profit maximizing pair $(K,L)$, then for all $\alpha \in \mathbb{R}_+$ $(\alpha K,\alpha L)$ will ...


3

The theory is that if you have three types of production sectors in the economy: Sectors which could export more with liberalised trade Sectors which could import more with liberalised trade Sectors which could see little change with liberalised trade then increased trade could tend to increase wages in the first type of sector, reduce wages in the second ...


2

There are a lot of possible places to start when looking at the literature on gender or racial wage discrimination/differentials. Preferably, it'd be good to look at the literature on labor supply as a whole (e.g. Mincer equation, work-leisure tradeoffs etc.), but we could be here all day discussing papers related to modelling wages in general (I am happy to ...


1

In the classical model, recycling (and most other changes in modes of consumption) doesn't change employment either way in the long term. The jobs gained by recycling are lost from other sectors and the jobs lost are gained. Shifting away from the classical model, there are short term changes in employment from shocks in which recycling as a profession ...


1

It all depends on how you define the 'wage premium between different areas'. The average NY resident makes $51,000 more per year than the average IL resident. There are 110 medical workers and 90 natural gas workers in NY and IL combined, so you could try weighting the wage premium of medical workers by 110/200 and the wage premium of natural gas workers ...


1

Welcome to SE. The two goods that the consumer consumes in this model are leisure and consumption. If the agent works more, he can consume more, but he has to give up leisure. Similarly, if he undertakes more leisure, he must consume less. All this assumes the wage rate is unchanged. However, consider an increase in the wage rate. The opportunity cost of ...


1

I'm not totally in the field, but from my view there is plenty of evidence on gender wage gap. The one thing I frequently hear in seminar talks is that, in the U.S., once you net out other reasons of unequal pay, such as age, experience, education, race etc, there is hardly any general gender wage gap. Another major fact is that women are predominantly ...


1

There's a lot going on in this question, so I'll focus on the labor-economics part of the question rather than the political-economy part of the question. If it is the case that these migrant workers are being paid considerably better than their alternative labor options, but they are at the same time being deprived of rights they might value (access to ...


1

Search and matching models are fairly standard in macroeconomics. I guess this is fair to say since Peter Diamond, Dale Mortensen, and Christopher Pissarides won the Nobel prize in 2010. These are the names behind the canonical DMP model that most graduate students have to study in their first year. Although I am not a macroeconomist, I am confident to say ...


1

Estimating overhead expenses by applying a coefficient to salaries can make sense in some circumstances. In an organisation which is mainly office-based, overheads may consist mainly of the costs of office space, office running costs (electricity, cleaning, etc), computer equipment and support, and (depending on the local jurisdiction) payroll-related and ...


1

It depends not just on the cost of living, but on the available means of income (wages) relative to each location. Rural areas may have cheaper rent, but they often have fewer employment opportunities. The right balance will often depend on the skills/qualifications of the individual.


1

Potential benefits of labor market reforms such as a reduction in job security and trade union power: To find the answer to a reduction in job security, just apply it to your personal life(assuming you are employed). If labor market reform comes in and puts my job at risk, I would become more competitive and work harder in order to keep my job. This ...


1

Taking a variable as given comes from the assumptions of the model and cannot result from any optimisation problem (think simply that when a variable is taken as given it is treated as a constant in your problem so one cannot lead to the other). Here, taking the public good as given means the household is not able to choose the level of public good to ...


1

What is the depreciation rate ($\delta$)? Assumptions: $Y_t = K_t^{\alpha} (A_tL_t)^{1-\alpha}$, $\alpha = 0.5$ ($\alpha$ = capital income share), $A_0 =1$ and $g = 0$ ($g$ = growth rate of technology), $s = 0.2$ ($s$ = savings rate), $n = 0.05$ ($n$ = growth rate of the labor force/population). Capital in the next period is equal to the capital from the ...


1

It depends on what you define as wage curve. I did not check in the textbooks, but you suggest that Pissarides and Cahuc et al. do not use the same mathemaical expression for the "wage curve". 1) In Cahuc et al., the expression combines the surplus sharing equation with the Bellman equations without using the free entry condition of firms. The wage $w$ is ...


1

A vacant job is an asset if we consider that the firm can match with a worker and get a positive expected profit. Firms post vacancies up to a point where $V=0$. If $V$ were positive, more firms would enter, would post additional vacancies, and would get a `rent' (by matching with worker).


1

Check this interesting report of the International Labor Office on Measurement of the Informal Economy. They raise and discuss the Key Challenges: The paucity of data Why is measurement important? Conceptualizing the informal economy (Employment in the informal sector and informal sector enterprises)


1

Chain rule! To make it simple call $\tilde{L} = A_L L$ and $\tilde{K} = A_K K$, so that $$ Y = F(\tilde{K}, \tilde{L}) $$ so that $$ \frac{\partial Y}{\partial L} = \frac{\partial \tilde{L}}{\partial L}\frac{\partial F}{\partial \tilde{L}} = A_L F_L(A_K K, A_L L) $$ the trick here is that you should read $F_L$ as the derivative of $F$ with respect to its ...


1

An estimate cannot be reasonably (let alone objectively) given without a priori knowledge of the specific industry. That means some American ceramic workers will lose their jobs because the jobs will be exported (outsourced) to China. Not necessarily. Apparently you are assuming that there would be an oversupply of ceramics, but an increase of ...


1

https://www.gov.uk/government/statistics/percentile-points-from-1-to-99-for-total-income-before-and-after-tax/ The ONS has freely available data on the percentile points of the income distribution as estimated from the Survey of Personal Incomes. The data is collected on a yearly basis, and is currently designated as "Percentile points from 1 to 99 for ...


1

I'd suggest "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors", published in the 2010 American Economic Review by Bertrand, Goldin, and Katz. Here's the abstract: "The careers of MBAs from a top US business school are studied to understand how career dynamics differ by gender. Although male and female MBAs ...


1

The Grundrisse’s “fragment on the machines” expounds on the tendency to universal automation rather famously, without Marx having stripped his more idealistic hopes from his exposition, and without the deadening jargon of Capital’s chapters on the organic composition of capital. It isn’t perfect on the automation of science itself, but that just needs to be ...


1

Neumark and Wascher did a lot of work on the minimum wage in the 90s and 00s, including their 1992 piece "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws". A non-paywalled version of the article can be found here. It includes use of panel data (cross sectional data that you are interested in can be considered a ...


1

Here is a short lists of study’s that looks at the on the reliance of JOLTS data as well as make comparisons to other similar data sets. Analysis of JOLTS Research Estimates by Size of Firm October 2012- Katherine Bauer Klemmer https://www.bls.gov/osmr/pdf/st120060.pdf ADJUSTED ESTIMATES OF WORKER FLOWS AND JOB OPENINGS IN JOLTS- Steven Davis, R. Jason ...


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