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8 votes

Minimum Wage effects on Adjacent Cities

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/...
Bayesian's user avatar
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8 votes

How does an increase in the price of "non-wage-goods" increase employment?

Wage-goods are goods that a worker with wages might buy, perhaps now more commonly called consumption goods Non-wage-goods are goods that a rentier receiving profits or interest might buy, including ...
Henry's user avatar
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6 votes
Accepted

Why does immigration boost the economy? (or does it not...?)

You’re right, the migration of workers boost the economy. It’s a stylized fact. It may have political consequences, though, but it is not the part of the analysis of economics. Let’s consider $A$ the ...
Übel Yildmar's user avatar
5 votes

Why are there so many migrants in the modern world?

Are current flows of migration bigger that they were in the past? We tend to forget history because the numbers involved currently are smaller relative to world population. For instance, the 8.8 ...
emeryville's user avatar
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4 votes

How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

On a lighter note,...... Robots do not eat, drink, buy consumer goods or take their date to the movies. Who is going to buy the goods that the robots produce if all the workforce is out of a job. Do ...
D R Williams's user avatar
4 votes

How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

Once artificial intelligence surpasses human intelligence, it will be up to A.I. to determine how we spend our days. On the one hand this already occurs. When you go online, algorithms are constantly ...
imonaboat's user avatar
4 votes
Accepted

Does immigration help to sustain welfare in rich European countries?

Here is a chart from the OECD, which shows the net fiscal impact of migrants on their recipient country (i.e. by how much to they contribute or withdraw from the welfare state, albeit excluding in-...
Ubiquitous's user avatar
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4 votes
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Why is full employment desired in an economy if competition promotes innovation?

Your question shows quite a lot of misunderstanding about what full employment means so let me first correct this. Full employment does not mean everyone is employed. Even at full employment there ...
1muflon1's user avatar
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3 votes
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How do I verify Philips curve empirically for recent years?

Simple correlation is not a good approach to evaluate the Phillips curve, because you are mixing many periods together. To get a better grasp of what this relationship might have been in the past, use ...
luchonacho's user avatar
  • 8,591
3 votes
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Minimum Wage effects on Adjacent Cities

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 ...
Vincek's user avatar
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3 votes
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Would a Job Guarantee impact Cost of Living?

The answer depends on whether the provision of full employment is a public good that corrects for a negative externality (poverty). Suppose it is and we wish to create full employment. First, we ...
Kitsune Cavalry's user avatar
  • 6,638
3 votes

How is workforce guaranteed in basic income system?

Brian's answer surely hit a major part of the issue - the level of the UBI. Yet, there are other aspects of the problem. People like to work. There is a huge amount of sociological literature showing ...
luchonacho's user avatar
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3 votes
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1929 stock market crash and unemployment rate

One caveat to the author you refer to, Thomas Sowell is a staunchly conservative economist, so most arguments you hear from him will stick to the Econ 101 wisdom that government intervention is ...
Kitsune Cavalry's user avatar
  • 6,638
3 votes

Unemployment rates in US during COVID-19

Yes it does. In fact large portion of current US unemployment can be attributed to the pandemic. According to U.S. Bureau of Labor Statistics (BLS): Of the 18.1 million people unemployed in June, 11....
1muflon1's user avatar
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3 votes

Would a Federal Job Guarantee hurt the economy?

Conventional economics research is not very kind to the idea of job guarantee (see discussion in highly cited works of Palley, 2001; Sawyer, 2003 and Seccarecia 2004). In general most of the ...
1muflon1's user avatar
  • 56.7k
3 votes

Separation rate & job finding rate

Separation = #new redundancies/employed person Job finding = #people entering employment/unemployed person
juice's user avatar
  • 31
3 votes
Accepted

How to create/replicate Diebold's Canadian Employment Index?

Why do you think it should be the OECD data you found on FRED? 100 is a base year, not quarter (seems to be 1991 here, assuming it starts in 1962.1 because it's the average quarterly value in that ...
AKdemy's user avatar
  • 4,122
3 votes

How can employment be up but production is down?

Unemployment is the wrong measure to look at. At least in the US, a lot of people have left the labor force altogether. As a result, the unemployment rate is very low as most people who are willing to ...
jpfeifer's user avatar
  • 529
2 votes

What has caused the recent 25% unemployment rate in Spain?

Thats a good question that I will answer perfectly. 1º When the socialists leader Felipe Gonzalez arrived to the power our industry represented the 39% of the GDP. So the industrial crisis hit a lot. ...
Basque_Spaniards's user avatar
2 votes
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How can we measure the size of the new uber-driver-type economy?

Those are important and difficult questions to answer. Regarding Uber, Jonathan Hall (Uber) and Alan Krueger (Princeton) wrote a joint paper on An Analysis of the Labor Market for Uber's Driver-...
emeryville's user avatar
  • 6,945
2 votes

Why does immigration boost the economy? (or does it not...?)

I think it is too strong a statement to say that immigration always and everywhere "improves" the economy, but there are some factors that do make it helpful (or less damaging) that are not ...
Dan's user avatar
  • 1,356
2 votes

How will non-rich citizens make a living if jobs keep getting replaced by robots and are outsourced?

You mention factory jobs and assembly lines. Firstly, let us think if the large part of these kind of jobs were supposed to be for human beings at all. What I mean for human beings is, are these jobs ...
Ziezi's user avatar
  • 307
2 votes
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Change in the way unemployment is calculated in the US?

The most likely explanation for discrepancies that political partisans like to pick at is that presidents like to cite different measures of unemployment. The BLS has 6 alternative categories of labor ...
Kitsune Cavalry's user avatar
  • 6,638
2 votes

How does an increase in the price of "non-wage-goods" increase employment?

According to Keynes, the first fundamental postulate of the classical theory of employment I. The wage is equal to the marginal product of labour or $$ W(N) = P \cdot \frac{dQ}{dN}(N) $$ where $W(...
zer0hedge's user avatar
  • 261
2 votes

Change in the way unemployment is calculated in the US?

In answer to the original question - not there has not been any change in the way unemployment is calculated. You can see how it is done here https://www.bls.gov/cps/cps_htgm.htm The way data is ...
James Connor's user avatar
2 votes
Accepted

Basic question on calculating unemployment rates

No, it's not correct. You are supposed to exclude people in FTE from labour force. Unemployment rate is a proportion of labour force which is unemployed. Labour force is defined as a sum of those ...
ElChorro's user avatar
  • 231
2 votes
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Why is matching function increasing in arguments?

Think about it this way. The function is measuring the number of new matches being created. If we increase either the vacancies or the amount of unemployed, the function will generate more matches. ...
Lee Sin's user avatar
  • 661
2 votes

Why is it not possible to prevent sudden unemployment of thousands of people?

This question boils down to asking why business cycles exist and change employment in shocks. One possibility is that employment is sticky or not worth changing constantly. A firm cannot constantly ...
Kitsune Cavalry's user avatar
  • 6,638

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