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Wage Determination and Imperfect Competition
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Booth, Alison L. Working Paper Wage Determination and Imperfect Competition IZA Discussion Papers, No. 8034 Provided in Cooperation with: IZA – Institute of Labor Economics Suggested Citation: Booth, Alison L. (2014) : Wage Determination and Imperfect Competition, IZA Discussion Papers, No. 8034, Institute for the Study of Labor (IZA), Bonn This Version is available at: http://hdl.handle.net/10419/96758 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu IZA DP No. 8034 Wage Determination and Imperfect Competition Alison Booth March 2014 DISCUSSION PAPER SERIES Forschungsinstitut zur Zukunft der Arbeit Institute for the Study of Labor Wage Determination and Imperfect Competition Alison Booth Australian National University and IZA Discussion Paper No. -
Labour Supply
7/30/2009 Chapter 2 Labour Supply McGraw-Hill/Irwin Labor Economics, 4th edition Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. 2- 2 Introduction to Labour Supply • This chapter: The static theory of labour supply (LS), i. e. how workers allocate their time at a point in time, plus some extensions beyond the static model (labour supply over the life cycle; household fertility decisions). • The ‘neoclassical model of labour-leisure choice’. - Basic idea: Individuals seek to maximise well -being by consuming both goods and leisure. Most people have to work to earn money to buy goods. Therefore, there is a trade-off between hours worked and leisure. 1 7/30/2009 2- 3 2.1 Measuring the Labour Force • The US de finit io ns in t his sect io n a re s imila r to t hose in N Z. - However, you have to know the NZ definitions (see, for example, chapter 14 of the New Zealand Official Yearbook 2008, and the explanatory notes in Labour Market Statistics 2008, which were both handed out in class). • Labour Force (LF) = Employed (E) + Unemployed (U). - Any person in the working -age population who is neither employed nor unemployed is “not in the labour force”. - Who counts as ‘employed’? Size of LF does not tell us about “intensity” of work (hours worked) because someone working ONE hour per week counts as employed. - Full-time workers are those working 30 hours or more per week. 2- 4 Measuring the Labour Force • Labor Force Participation Rate: LFPR = LF/P - Fraction of the working-age population P that is in the labour force. -
Unemployment in an Extended Cournot Oligopoly Model∗
Unemployment in an Extended Cournot Oligopoly Model∗ Claude d'Aspremont,y Rodolphe Dos Santos Ferreiraz and Louis-Andr´eG´erard-Varetx 1 Introduction Attempts to explain unemployment1 begin with the labour market. Yet, by attributing it to deficient demand for goods, Keynes questioned the use of partial analysis, and stressed the need to consider interactions between the labour and product markets. Imperfect competition in the labour market, reflecting union power, has been a favoured explanation; but imperfect competition may also affect employment through producers' oligopolistic behaviour. This again points to a general equilibrium approach such as that by Negishi (1961, 1979). Here we propose an extension of the Cournot oligopoly model (unlike that of Gabszewicz and Vial (1972), where labour does not appear), which takes full account of the interdependence between the labour market and any product market. Our extension shares some features with both Negishi's conjectural approach to demand curves, and macroeconomic non-Walrasian equi- ∗Reprinted from Oxford Economic Papers, 41, 490-505, 1989. We thank P. Champsaur, P. Dehez, J.H. Dr`ezeand J.-J. Laffont for helpful comments. We owe P. Dehez the idea of a light strengthening of the results on involuntary unemployment given in a related paper (CORE D.P. 8408): see Dehez (1985), where the case of monopoly is studied. Acknowledgements are also due to Peter Sinclair and the Referees for valuable suggestions. This work is part of the program \Micro-d´ecisionset politique ´economique"of Commissariat G´en´eral au Plan. Financial support of Commissariat G´en´eralau Plan is gratefully acknowledged. -
UNEMPLOYMENT and LABOR FORCE PARTICIPATION: a PANEL COINTEGRATION ANALYSIS for EUROPEAN COUNTRIES OZERKEK, Yasemin Abstract This
Applied Econometrics and International Development Vol. 13-1 (2013) UNEMPLOYMENT AND LABOR FORCE PARTICIPATION: A PANEL COINTEGRATION ANALYSIS FOR EUROPEAN COUNTRIES OZERKEK, Yasemin* Abstract This paper investigates the long-run relationship between unemployment and labor force participation and analyzes the existence of added/discouraged worker effect, which has potential impact on economic growth and development. Using panel cointegration techniques for a panel of European countries (1983-2009), the empirical results show that this long-term relation exists for only females and there is discouraged worker effect for them. Thus, female unemployment is undercount. Keywords: labor-force participation rate, unemployment rate, discouraged worker effect, panel cointegration, economic development JEL Codes: J20, J60, O15, O52 1. Introduction The link between labor force participation and unemployment has long been a key concern in the literature. There is general agreement that unemployment tends to cause workers to leave the labor force (Schwietzer and Smith, 1974). A discouraged worker is one who stopped actively searching for jobs because he does not think he can find work. Discouraged workers are out of the labor force and hence are not taken into account in the calculation of unemployment rate. Since unemployment rate disguises discouraged workers, labor-force participation rate has a central role in giving clues about the employment market and the overall health of the economy.1 Murphy and Topel (1997) and Gustavsson and Österholm (2006) mention that discouraged workers, who have withdrawn from labor force for market-driven reasons, can considerably affect the informational value of the unemployment rate as a macroeconomic indicator. The relationship between unemployment and labor-force participation is an important concern in the fields of labor economics and development economics as well. -
ED309204.Pdf
DOCUMENT RESUME ED 309 204 UD 026 853 AUTHOR O'Neill, June; And Others TITLE The Economic Progress of Black Men in America. Clearinghouse Publication 91. INSTITUTION Commission on Civil Rights, Washington, D.C. PUB DATE Oct 86 NOTE 166p. AVAILABLE FROMUnited States Commission on Civil Rights, Washington, DC 20425. PUB TYPE Reports - Research/Technical (143) EDRS PRICE MF01/PC07 Plus Postage. DErCRIPTORS *Black Employment; Blacks; Civil Rights Legislation; *Economically Disadvantaged; *Education Work Relationship; Equal Opportunities (Jobs); Labor Market; *Males; Multivariate Analysis; *Racial Differences; Racial Discrimination; Research Proposals; *Salary Wage Differentials; Unemployment IDENTIFIERS '.*Economic Equity ABSTRACT This report attempts to identify and analyze the causes of the differences between the earnings and employment of black males and white males. Although the earnings gap between black and white men was substantially reduced between 1940 and 1980, black men still earn less than white men. While the relative earnings of black men has risen since 1940, their relative employment has declined. Factors that influence the earnings gap include the following: (1) discrimination; (2) education; (3) region of residence; (4) industrial sector; and (5) marital status. The report finds that while a narrowing of racial differences in worker characteristics accounts for part of the earnings convergence, other factors, including declining racial prejudice, federal civil rights policies, and unmeasured changes in employment skills, -
Competitiveness and the Labour Market
Ministry of Finance WORKING PAPER No. 4 www.pm.gov.hu/ ÁGOTA SCHARLE COMPETITIVENESS AND THE LABOUR MARKET This paper was produced as part of the research project entitled ‘Economic competitiveness: recent trends and options for state intervention’ October 2003 This paper reflects the views of the author and does not represent the policies of the Ministry of Finance Author: Ágota Scharle Ministry of Finance [email protected] Series Editors: Orsolya Lelkes and Ágota Scharle Ministry of Finance Strategic Analysis Division The Strategic Analysis Division aims to support evidence-based policy-making in priority areas of financial policy. Its three main roles are to undertake long-term research projects, to make existing empirical evidence available to policy makers and to promote the application of advanced research methods in policy making. The Working Papers series serves to disseminate the results of research carried out or commissioned by the Ministry of Finance. Working Papers in the series can be downloaded from the web site of the Ministry of Finance: http://www.pm.gov.hu Series editors may be contacted at [email protected] 2 Summary If competitiveness is defined as growth potential, the competitiveness of the contribution of human resources to economic competitiveness labour market is determined by the size and skills of the labour force and the flexibility of the labour market. This paper aims to review available statistics and research and identify the major constraints on competitiveness and provide a starting point for subsequent research (see recommendations at the end). In Hungary, 60% of the working age population are in low activity rate employment or looking for work. -
Interwar Unemployment in International Perspective
IRLE IRLE WORKING PAPER #12-88 April 1988 Interwar Unemployment In International Perspective Barry Eichengreen and Tim Hatton Cite as: Barry Eichengreen and Tim Hatton. (1988). “Interwar Unemployment In International Perspective.” IRLE Working Paper No. 12-88. http://irle.berkeley.edu/workingpapers/12-88.pdf irle.berkeley.edu/workingpapers Institute for Research on Labor and Employment UC Berkeley Title: Interwar Unemployment in International Perspective Author: Eichengreen, Barry, University of California, Berkeley Hatton, Tim, University of Essex Publication Date: 04-01-1988 Series: Working Paper Series Publication Info: Working Paper Series, Institute for Research on Labor and Employment, UC Berkeley Permalink: http://escholarship.org/uc/item/7bw188gk Keywords: Eichengreen, Hatton, unemployment, international perspective Copyright Information: All rights reserved unless otherwise indicated. Contact the author or original publisher for any necessary permissions. eScholarship is not the copyright owner for deposited works. Learn more at http://www.escholarship.org/help_copyright.html#reuse eScholarship provides open access, scholarly publishing services to the University of California and delivers a dynamic research platform to scholars worldwide. Interwar Unemployment in International Perspective Barry Eichengreen University of California, Berkeley Tim Hatton University of Essex January 1988 This paper is the editors' introduction to a volume of the same name, to be published by Martinus Nijhoff later this year. INTERWAR UNEMPLOYMENT IN INTERNATIONAL PERSPECTIVE The outstanding internal economic problem of the interwar period in all countries studied was undoubtedly unemployment. Next to war, unemployment has been the most widespread, most insidious and most corroding malady of our generation; it is the specific disease of western countries in our time. -
Job Characteristics and Labour Supply
A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Kunze, Lars; Suppa, Nicolai Working Paper Job Characteristics and Labour Supply Ruhr Economic Papers, No. 418 Provided in Cooperation with: RWI – Leibniz-Institut für Wirtschaftsforschung, Essen Suggested Citation: Kunze, Lars; Suppa, Nicolai (2013) : Job Characteristics and Labour Supply, Ruhr Economic Papers, No. 418, ISBN 978-3-86788-473-0, Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI), Essen, http://dx.doi.org/10.4419/86788473 This Version is available at: http://hdl.handle.net/10419/77084 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence. www.econstor.eu RUHR ECONOMIC PAPERS Lars Kunze Nicolai Suppa Job Characteristics and Labour Supply #418 Imprint Ruhr Economic Papers Published by Ruhr-Universität Bochum (RUB), Department of Economics Universitätsstr. -
Supply and Demand Side Limitations Affecting the Structure of Agriculture and the Rural Economy
No. 21, February 2012 Barbara Tocco, Sophia Davidova and Alastair Bailey Supply and Demand Side Limitations Affecting the Structure of Agriculture and the Rural Economy ABSTRACT This paper criticises the neo-classical assumptions of perfect factor markets and of complete information, which constitute central elements in labour market theory. Based on a literature review and on economic reports from transition economies, as well as developing countries and more advanced economies, this deliverable focuses on the structural impediments and imperfections that often characterise rural labour markets and that may prevent an efficient allocation of labour. According to empirical studies, transactions costs and rigidities hinder the well-functioning of labour markets and constrain labour adjustments. The paper attempts to classify the various limitations of rural labour markets from both the supply and demand side, although the distinction is not always clear-cut as some problems occur on both sides. The identification of these issues is extremely important as it allows us to highlight the inefficiencies and the failures in labour markets and to understand their impact on labour allocation. In this context, market intervention is desirable and the paper provides particular support for rural development policies such as investments in human capital. Lastly, labour institutions can play a key role in promoting the efficient functioning of labour markets, and thus it is fundamental that they are well established. FACTOR MARKETS Working Papers present work being conducted within the FACTOR MARKETS research project, which analyses and compares the functioning of factor markets for agriculture in the member states, candidate countries and the EU as a whole, with a view to stimulating reactions from other experts in the field. -
Economic Development with Unlimited Supplies of Labour”* (1954)
W.A.Lewis on Development with Unlimited Supplies of Labor 1 Space for Notes W.A. Lewis, ↓ “Economic Development with Unlimited Supplies of Labour”* (1954) 1. This essay is written in the classical tradition, making the classical assumption, and asking the classical question. The classics, from Smith to Marx, all assumed, or argued, that an unlimited supply of labour was available at subsistence wages. They then enquired how production grows through time. They found the answer in capital accumulation, which they explained in terms of their analysis of the distribution of income. Classical systems stems thus determined simultaneously income distribution and income growth, with the relative prices of commodities as a minor bye-product. Interest in prices and in income distribution survived into the neo-classical era, but labour ceased to be unlimited in supply, and the formal model of economic analysis was no longer expected to explain the expansion of the system through time. These changes of assumption and of interest served well enough in the European parts of the world, where labour was indeed limited in supply, and where for the next half century it looked as if economic expansion could indeed be assumed to be automatic. On the other hand over the greater part of Asia labour is unlimited in supply, and economic expansion certainly cannot be taken for granted. Asia’s problems, however, attracted very few economists during the neo-classical era (even the Asian economists themselves absorbed the assumptions and preoccupations of European economics) and hardly any progress has been made for nearly a century with the kind of economics which would throw light upon the problems. -
Do Ends Justify Means? Feminist Economics Perspectives on the Business Case for Gender Equality in the UK Labour Market
e-cadernos CES 05 | 2009 As fundações institucionais da economia Do Ends Justify Means? Feminist Economics Perspectives on the Business Case for Gender Equality in the UK Labour Market Emily Thomson Electronic version URL: http://journals.openedition.org/eces/298 DOI: 10.4000/eces.298 ISSN: 1647-0737 Publisher Centro de Estudos Sociais da Universidade de Coimbra Electronic reference Emily Thomson, « Do Ends Justify Means? Feminist Economics Perspectives on the Business Case for Gender Equality in the UK Labour Market », e-cadernos CES [Online], 05 | 2009, Online since 01 September 2009, connection on 30 April 2019. URL : http://journals.openedition.org/eces/298 ; DOI : 10.4000/eces.298 DO ENDS JUSTIFY MEANS? FEMINIST ECONOMICS PERSPECTIVES ON THE BUSINESS CASE FOR GENDER EQUALITY IN THE UK LABOUR MARKET EMILY THOMSON DIVISION OF PUBLIC POLICY GLASGOW CALEDONIAN UNIVERSITY Abstract: This paper intends to explore a feminist economics perspective on business case arguments for gender equality in the UK labour market, where there are significant inequalities between men and women. Policy discourse on gender equality has moved from one which emphasises ‘equal opportunities’ and notions of fairness and equal treatment to one which focuses on increasing economic efficiency in the wider economy and viewing female employees as a competitive advantage for individual firms. Developments in the policy discourse of gender equality in the labour market have been heavily influenced by mainstream, neoclassical economics. An example of this is the current UK government aim to encourage private sector employers to take action on gender equality voluntarily on the basis of ‘business case’ arguments. The business case itself has been critiqued by many authors but has yet to be considered from an explicitly feminist economics perspective. -
Women in the World of Work. Pending Challenges for Achieving Effective Equality in Latin America and the Caribbean.Thematic Labour Overview, 2019
5 5 THEMATIC Labour Women in the World of Work Pending Challenges for Achieving Effective Equality in Latin America and the Caribbean 5 Women in the World of Work Pending Challenges for Achieving Effective Equality in Latin America and the Caribbean Copyright © International Labour Organization 2019 First published 2019 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Licensing), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with a reproduction rights organ- ization may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. ILO Women in the world of work. Pending Challenges for Achieving Effective Equality in Latin America and the Caribbean.Thematic Labour Overview, 2019. Lima: ILO / Regional Office for Latin America and the Caribbean, 2019. 188 p. Employment, labour market, gender, labour income, self-employment, equality, Latin America, Central America, Caribbean. ISSN: 2521-7437 (printed edition) ISSN: 2414-6021 (pdf web edition) ILO Cataloguing in Publication Data The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its author- ities, or concerning the delimitation of its frontiers.