32

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

So this is a very broad topic. There are arguments pro and against minimum wages and there are many variables to consider. As for your question, arguments 1-3 are basically argument 1. A higher minimum wage can limit employment / increase unemployment among people whose hourly value of labor to the employer is less than the minimum wage. As a result, those ...


3

For the googling part of your question: In the context of US labor politics, "right-to-work laws" refers to state laws that prohibit union security agreements between companies and labor unions. Under these laws, employees in unionized workplaces are banned from negotiating contracts which require all members who benefit from the union contract to ...


3

The exponents do not cancel each other out. E.g., $$ (a^2+b^2)^{1/2} \neq a + b $$ because $$ (a^2+b^2)^{1/2} \neq (a^2 + 2ab + b^2)^{1/2}. $$


3

My understanding is that Piketty uses the term "P90/P10" only to measure wage inequality and the term "C90/C10" for wages plus social charges. The underlying distributions are different, but they both measure the ratio of the 90th percentile to the 10th percentile.


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

Yes. In 2018, the German YouTuber Jörg Sprave established YouTubers Union (see also FairTube). In 2019, it entered into a partnership with IG Metall: IG Metall press release, news stories by Observer, Bloomberg, CNBC.


2

At the end of the day, currency (such as $) is just a means of purchasing real goods and services in an economy. Roughly, utility corresponds to consumption. Since you assume the capitalist isn't allowed to consume, there is nothing for the capitalist to gain even if they capture all the currency. Here is a slightly modified thought experiment. Suppose ...


2

The value is subjective. If the buyer values the shoes at 10 yuan and the seller values 10 yuan at 10 yuan then from economic perspective equal amount of value was exchanged (i.e 10 value of yuan embedded in paper notes for 10 value of yuan embedded in shoes) regardless of what were the costs of production costs. Also money just serves to solve double ...


2

Good question! Here Acemoglu and Restrepo discuss one of the many possible effects of automation, such that automation is likely to induce additional usage of capital in the sector or additional capital accumulation, which can increase labor demand. They elaborate on this effect on their 2018 AER paper "The Race between Man and Machine: Implications of ...


2

I found this excellent Economic Letter from the Federal Reserve Bank of San Francisco that speaks to this observation. It is from Carl R. Walsh (july 16,2004) (https://www.frbsf.org/economic-research/publications/economic-letter/2004/july/the-productivity-and-jobs-connection-the-long-and-the-short-run-of-it/ ) In this letter he notes that, newspaper ...


1

Let's distinguish exogeneous from endogenous factors, distinguish partial versus general equilibrium analysis, consider here the labor market of one product, i.e., a partial analysis, consider that this labor market is perfectly competitive. In your reasoning, the decrease in labor supply, which typically leads to an increase in the wage rate, would come ...


1

The logic you presented is known as technological unemployment. It is true that due to technological improvements, you would need less people to do the same amount of work. But along with technological progress, you would need more highly skilled workers to operate these high-tech machinery. What Mankiw meant (at least according to me) is that the demand ...


1

That's reported in A-38 under "not in the labor force" but "want a job" and "did not search for work in the previous year". The line/figure doesn't have a U-style indicator.


1

This is because by definition velocity of money is basically how quickly people spend money they get. Hence any factor that causes people to hold money holder decreases velocity of money and vice versa. The frequency people get pay might affect how quickly they spend money. For example, if you are paid quarterly basis you will probably be more conservative ...


1

$W(4) = \max\left\{4+bW(4),\frac{1}{2}\left(4 - k + bW(4)\right) + \frac{1}{2}\left(16 - k + bW(16)\right)\right\}$ $W(16) = \max\left\{16+bW(16),\frac{1}{2}\left(4 - k + bW(4)\right) + \frac{1}{2}\left(16 - k + bW(16)\right)\right\} = 16+bW(16)$ First solve for $W(16)$ to get $W(16) = \frac{16}{1-b}$. Then substitute it in $W(4)$ to solve for $W(4)$ as a ...


1

The word "noise" implies that there is error in the measurement of household debt, but there is no good reason to believe this is so. In fact, I argue that a finer time period would give you more detail, and a more accurate measurement of the correlation between two variables. You don't want to find a moving average because that throws away valuable ...


1

Let's say $D_t$ is the stock of debt at time $t$. The first difference is $D_t - D_{t-1}$. The second difference is $(D_t - D_{t-1}) - (D_{t-1}-D_{t-2}) = D_t - 2D_{t-1} + D_{t-2}$. The [4-period] moving average is then given by \begin{align*} &= \frac 1 4 (D_t-2D_{t-1}+D_{t-2}+D_{t-1}-2D_{t-2}+D_{t-3}\\ &\qquad+D_{t-2}-2D_{t-3}+D_{t-4}+D_{t-3}-...


1

According to the third row in this table from the American Enterprise Institute (they credit the Census Bureau but I could not find the same indicators in their data) your hypothesis is incorrect: the Mean Number of Earners per Household is increasing in income for each Quintile. I am surprised by the average number of earners in the highest quintile, but ...


1

Your question is very broad so it is hard to answer but I will try to do it Can there be sustainable growth without debt? Yes! Most models of economic growth don't even have debt in them. Most economists believe that growth comes form increase in factors of production like capital accumulation and from increases in avaiable technology. Debt can also play ...


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

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

Economics cannot answer your question. Economics as a discipline discarded normative assumptions ("what is good?") in order to deal with issues around price. This was a sound academic decision (Hey bro, how much for your kidney, no seriously, how much for both your kidneys). As a result economics don't answer for "better" but for "more." There is another ...


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