scholarly journals Labor Contracts, Equal Treatment, and Wage-Unemployment Dynamics

2010 ◽  
Vol 2 (3) ◽  
pp. 98-127 ◽  
Author(s):  
Andy Snell ◽  
Jonathan P Thomas
Keyword(s):  
Labor Market ◽  
Equal Treatment ◽  
Labor Contracts ◽  
Real Wages ◽  
Us Economy ◽  
Productivity Data ◽  
Sectoral Productivity ◽  
Post War ◽  
At Will

This paper analyses a model in which firms cannot pay discriminate based on year of entry. It is assumed that workers can costlessly quit at any time, while firms are committed to contracts. We solve for the dynamics of wages and unemployment, and show that real wages display a degree of downward rigidity and do not necessarily clear the labor market. Using sectoral productivity data from the post-war US economy, we assess the ability of the model to match the actual unemployment series. We also show that equal treatment follows from the assumption of at-will employment contracting in our model. (JEL E24, E32, J31, J41)

The rate of profit and economic stagnation in the United States economy

1997 ◽  
Vol 1 (1) ◽  
pp. 161-174
Author(s):  
Fred Moseley
Keyword(s):  
World War Ii ◽  
The United States ◽  
Real Wages ◽  
Debt Burden ◽  
The Great Depression ◽  
Us Economy ◽  
United States Economy ◽  
The Us ◽  
Post War ◽  
Rate Of Profit

AbstractIn the first thirty years after World War II, the US economy performed very well. The rate of growth averaged 4—5%, the rate of unemployment was seldom above 5%, inflation was almost non-existent (1—2%), and the living standards of workers improved steadily. These were the ‘good old days'. However, this long period of expansion and prosperity ended in the 1970s. Since then, both the rate of unemployment and the rate of inflation have been much higher than before, and the average real wages of workers (i.e. the purchasing power of wages) have declined some 20%. Productivity growth has also slowed down and the debt burden of both capitalist enterprises and the Federal government has increased dramatically. It is in this sense that we may refer to the ‘economic crisis’ of the US economy over the last two decades. This crisis has certainly not been as severe as the Great Depression of the 1930s, but the economic performance has been significantly worse than in the early post-war period.

scholarly journals Tradability and the Labor‐Market Impact of Immigration: Theory and Evidence From the United States

Econometrica ◽  
2020 ◽  
Vol 88 (3) ◽  
pp. 1071-1112 ◽  
Author(s):  
Ariel Burstein ◽  
Gordon Hanson ◽  
Lin Tian ◽  
Jonathan Vogel
Keyword(s):  
United States ◽  
Labor Market ◽  
The United States ◽  
Simple Condition ◽  
Foreign Born ◽  
Real Wages ◽  
Local Labor Market ◽  
Relative Wages ◽  
Theoretical Mechanism ◽  
Using Data

In this paper, we study how occupation (or industry) tradability shapes local labor‐market adjustment to immigration. Theoretically, we derive a simple condition under which the arrival of foreign‐born labor into a region crowds native‐born workers out of (or into) immigrant‐intensive jobs, thus lowering (or raising) relative wages in these occupations, and we explain why this process differs within tradable versus within nontradable activities. Using data for U.S. commuting zones over the period 1980–2012, we find—consistent with our theory—that a local influx of immigrants crowds out employment of native‐born workers in more relative to less immigrant‐intensive nontradable jobs, but has no such effect across tradable occupations. Further analysis of occupation labor payments is consistent with adjustment to immigration within tradables occurring more through changes in output (versus changes in prices) when compared to adjustment within nontradables, thereby confirming our model's theoretical mechanism. We then use the model to explore the quantitative consequences of counterfactual changes in U.S. immigration on real wages at the occupation and region level.

scholarly journals Unemployment in an Interdependent World

2013 ◽  
Vol 5 (1) ◽  
pp. 262-301 ◽  
Author(s):  
Gabriel J Felbermayr ◽  
Mario Larch ◽  
Wolfgang Lechthaler
Keyword(s):  
Labor Market ◽  
Labor Market Outcomes ◽  
Relative Size ◽  
Labor Market Institutions ◽  
Unemployment Benefits ◽  
Real Wages ◽  
Market Outcomes ◽  
Trade Model ◽  
Theoretical Predictions ◽  
Set Up

How do changes in labor market institutions, like more generous unemployment benefits in one country, affect labor market outcomes in other countries? We set up a two-country Armingtonian trade model with frictions on the goods and labor markets. Contrary to the literature, higher labor market frictions increase unemployment at home and abroad. The strength of the spillover depends on the relative size of countries and on trade costs. It is exacerbated when real wages are rigid. Using panel data for 20 rich OECD countries, and controlling for institutions as well as for business cycle comovement, we confirm our theoretical predictions. (JEL E24, F16, J64, J65)

The Labor Market of the Early Roman Empire

2004 ◽  
Vol 34 (4) ◽  
pp. 513-538 ◽  
Author(s):  
Peter Temin
Keyword(s):  
United States ◽  
Roman Empire ◽  
Labor Market ◽  
Supply And Demand ◽  
The United States ◽  
Labor Contracts ◽  
Market Driven

The available evidence on wages and labor contracts supports the existence of a functioning labor market in the early Roman empire, in which workers could change jobs in response to market-driven rewards. Slaves were included in the general labor market because Roman slavery, unlike that in the United States and in Brazil, permitted frequent manumission to citizen status. Slaves' ability to improve their status provided them with incentives to cooperate with their owners and act like free laborers. As a result, the supply and demand for labor were roughly equilibrated by wages and other payments to most workers, both slave and free.

Volenti Non Fit Iniuria? Contract Freedom and Labor Market Institutions

2009 ◽  
Vol 31 (1) ◽  
Author(s):  
Richard Sturn
Keyword(s):  
Labor Market ◽  
Market Failure ◽  
Labor Market Institutions ◽  
Economic Welfare ◽  
Labor Contracts ◽  
Market Institutions ◽  
Critical Perspective ◽  
The Core ◽  
Critical Insight ◽  
Core Features

AbstractVarious writers point out that accepting the terms of a contract does not imply consent to the background conditions of this contract. This is an important critical insight allowing for a critical perspective on the principle of free contract, according to which the state should not interfere with what adult agents contractually agree upon. In this paper I argue that the practical relevance of this critical insight depends on the availability of answers to three questions: (1) Which are the core features of baseline background conditions supporting a well-ordered labor market enhancing economic welfare? (2) In which cases and for which reasons are non-market institutions needed in order to support these features? (3) Under which conditions and at which levels can collective mechanisms be expected to support adequate non-market institutions ‘curing market failure’? Some of the core properties of labor markets and labor contracts are discussed which need to be taken into account in attempts to answer these questions, most notably problems of contract enforcement, market failure and collective action.

Double Disadvantage

2016 ◽  
Vol 666 (1) ◽  
pp. 78-90 ◽  
Author(s):  
Jorge Durand ◽  
Douglas S. Massey ◽  
Karen A. Pren
Keyword(s):  
United States ◽  
Labor Market ◽  
Labor Markets ◽  
Mexican Immigrants ◽  
The United States ◽  
Undocumented Migrants ◽  
Real Wages ◽  
Illegal Migrants ◽  
Secondary Sector ◽  
Substantial Decline

From 1988 to 2008, the United States’ undocumented population grew from 2 million to 12 million persons. It has since stabilized at around 11 million, a majority of whom are Mexican. As of this writing, some 60 percent of all Mexican immigrants in the United States are in the country illegally. This article analyzes the effect of being undocumented on sector of employment and wages earned in the United States. We show that illegal migrants are disproportionately channeled into the secondary labor market, where they experience a double disadvantage, earning systematically lower wages by virtue of working in the secondary sector and receiving an additional economic penalty because they are undocumented. Mexican immigrants, in particular, experienced a substantial decline in real wages between 1970 and 2010 attributable to their rising share of undocumented migrants in U.S. labor markets during a time when undocumented hiring was criminalized.

Research of the Russian Labor Market and Peculiarities of Human Resources in the Period of Economic Restoration in a Pandemic

2022 ◽  
pp. 63-67
Author(s):  
D. Zaharov ◽  
YEkatyerina Kashtanova
Keyword(s):  
Labor Market ◽  
Human Resources ◽  
Economic Activity ◽  
Operating Conditions ◽  
Real Wages ◽  
Recovery Processes ◽  
Current State ◽  
The Russian Federation ◽  
Near Future ◽  
Further Development

This article examines the current state, operating conditions and forecasts for the development of the Russian labor market after the coronavirus pandemic in 2020. The growth of the gross domestic product was revealed in July 2021, compared to July 2020. It was noted that the most important factor in the recovery and further development of economic activity in the first half of 2021 was the consumer demand of the population. General trends in the labor market are showing positive dynamics, and the process of increasing real wages has continued. The recovery processes brought workers' cash incomes closer to the indicators of 2019. It was noted that the development of the labor market in the near future will be based on the implementation in the Russian Federation of a state program called "Promotion of employment of the population", in addition, national projects have been developed: "Demography", "Small and medium-sized businesses and support for individual entrepreneurial initiative".

Home Again

2019 ◽  
pp. 178-184
Author(s):  
James G. Mendez
Keyword(s):  
Black Women ◽  
Black Men ◽  
Equal Treatment ◽  
Men And Women ◽  
Black Soldiers ◽  
Post War ◽  
American Society

By the end of 1865, all twenty-six of the northern black regiments were mustered out of service and returned home to their families. The first was the 54th Massachusetts Infantry, which mustered out on August 20, 1865, and discharged in Boston on September 1. The last northern black regiment mustered out in December 1865. The reception once they arrived home was one of exuberance and joy for most northern black regiments. Large crowds of admirers welcomed them home. Once back where the regiment was organized, the regiment settled their final business with the paymaster and then officially disbanded. The soldiers then went home to their families. Northern black soldiers went home with a tremendous sense of accomplishment. They had successfully defended their country against rebellion, helped to put an end to slavery, shown both skill and bravery, and proved their worth to their country. In return for their loyalty, blacks felt that their actions justified equal treatment in American society. Black men and women were optimistic and continued to strive for better lives as they settled into their post-war lives. The voices of most northern black women became more silent since they were no longer writing letters to military officials.

Wages and Welfare

Putinomics ◽  
2018 ◽  
Author(s):  
Chris Miller
Keyword(s):  
Labor Market ◽  
Welfare State ◽  
Market Economy ◽  
Wage Growth ◽  
Primary Source ◽  
Living Standards ◽  
European Countries ◽  
Real Wages ◽  
The Government ◽  
Almost All

As Russia’s firms got more productive, living standards shot up. For one thing, companies started offering far more variety. The consumer paradise that advocates of a market economy had promised long-suffering Russians finally arrived. At the same time, higher productivity meant higher wages. Real wages increased every year of Putin’s presidency until 2014, averaging 15% per year from 2000 to 2008. At the same time, higher tax collection let the government boost pension payouts, helping older Russians, almost all of whom relied on state pensions as their primary source of retirement income. Yet higher pensions did not augur the return of an extensive welfare state, as the government eliminated many benefits. At the same time, the government kept labor protections weak, and Russia’s labor market continues to be far more flexible than many other European countries. Encouraged by his liberal economic advisers, Putin has implemented economically orthodox welfare and labor market policies, earning solid marks from the IMF. The tremendous wage growth of the 2000s, however, meant that most Russians were happy to ignore weak social protections in exchange for an ever-expanding paycheck.

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