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Business cycles --- Wages --- WAGES --- Econometric models --- Econometric models. --- WAGES - Econometric models --- Business cycles - Econometric models
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We analyze labor market models where the law of one price does not hold-that is, models with equilibrium wage dispersion. We begin by assuming workers are ex ante heterogeneous, and highlight a flaw with this approach: if search is costly, the market shuts down. We then assume workers are homogeneous, but matches are ex post heterogeneous. This model is robust to search costs, and it delivers equilibrium wage dispersion. However, we prove the law of two prices holds: generically, we cannot get more than two wages. We explore several other models, including one combining ex ante and ex post heterogeneity, which is robust and can deliver more than two-point wage distributions.
Electronic books. -- local. --- Labor market -- Econometric models. --- Wages -- Econometric models. --- Econometrics --- Labor --- Wages, Compensation, and Labor Costs: General --- Unemployment: Models, Duration, Incidence, and Job Search --- Demand and Supply of Labor: General --- Bargaining Theory --- Matching Theory --- Labour --- income economics --- Econometrics & economic statistics --- Wages --- Unemployment --- Labor markets --- Search models --- Unemployment rate --- Labor market --- Equilibrium --- Economics --- Econometric models. --- Income economics
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Search models with posting and match-specific heterogeneity generate wage dispersion. Given K values for the match-specific variable, it is known that there are K reservation wages that could be posted, but generically never more than two actually are posted in equilibrium. What is unknown is when we get two wages, and which wages are actually posted. For an example with K = 3, we show equilibrium is unique; may have one wage or two; and when there are two, the equilibrium can display any combination of posted reservation wages, depending on parameters. We also show how wages, profits, and unemployment depend on productivity.
Electronic books. -- local. --- Equilibrium (Economics) -- Econometric models. --- Wages -- Econometric models. --- Business & Economics --- Economic Theory --- Equilibrium (Economics) --- Wages --- Econometric models. --- Compensation --- Departmental salaries --- Earnings --- Pay --- Remuneration --- Salaries --- Wage-fund --- Wage rates --- Working class --- Income --- Labor costs --- Compensation management --- Cost and standard of living --- Prices --- Labor --- Public Finance --- Criminology --- Wages, Compensation, and Labor Costs: General --- Illegal Behavior and the Enforcement of Law --- Employment --- Unemployment --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- National Government Expenditures and Related Policies: General --- Unemployment: Models, Duration, Incidence, and Job Search --- Labour --- income economics --- Corporate crime --- white-collar crime --- Public finance & taxation --- Illicit financial flows --- Public expenditure review --- Money laundering --- Economic theory --- Expenditures, Public --- Income economics --- White-collar crime
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Euro-area real wages have decelerated sharply in the last 20 years, but this has not yet translated into visibly lower unemployment or faster growth. Weak output growth after such a cost shock is somewhat puzzling and has led some to question the benefits of wage moderation. By isolating structural from cyclical factors in a panel of industrial countries, I show that structurally slower real wage growth, that is, "wage moderation," does raise output growth and lower unemployment rates. However, I show that the impact on both variables depends crucially on product market regulation: weaker competition and barriers to entry mute the growth effects of structural real wage changes by allowing incumbent firms to appropriate larger rents. In this context, overly regulated product markets in the euro area are undermining the effects of labor market reforms on output and employment.
Electronic books. -- local. --- Labor market -- Econometric models. --- Structural adjustment (Economic policy). --- Wages -- Econometric models. --- Finance: General --- Labor --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Policy Objectives --- Policy Designs and Consistency --- Policy Coordination --- Market Structure and Pricing: General --- General Financial Markets: General (includes Measurement and Data) --- Wages, Compensation, and Labor Costs: General --- Wages, Compensation, and Labor Costs: Public Policy --- Unemployment: Models, Duration, Incidence, and Job Search --- Labour --- income economics --- Finance --- Commodity markets --- Wage bargaining --- Unemployment rate --- Real wages --- Financial markets --- Commodity exchanges --- Ireland --- Structural adjustment (Economic policy) --- Labor market --- Econometric models. --- Income economics
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One of the more troubling aspects of the ferment in macroeconomics that followed the demise of the Keynesian dominance in the late 1960s has been the inability of many of the new ideas to account for unemployment remains unexplained because equilibrium in most economic models occurs with supply equal to demand: if this equality holds in the labor market, there is no involuntary unemployment. Efficiency Wage Models of the Labor Market explores the reasons why there are labor market equilibria with employers preferring to pay wages in excess of the market-clearing wage and thereby explains involuntary unemployment. This volume brings together a number of the important articles on efficiency wage theory. The collection is preceded by a strong, integrative introduction, written by the editors, in which the hypothesis is set out and the variations, as described in subsequent chapters, are discussed.
Labour market --- Wage formation --- Wages --- Salaires --- Econometric models --- Modèles économétriques --- WAGES --- 330.564 --- 331.5 --- AA / International- internationaal --- 332.20 --- 332.27 --- 339.21 --- 332.630 --- 332.620 --- Verdeling van nationaal inkomen. Inkomensverdeling --- Arbeidsmarkt. Werkgelegenheid --(algemeen) --- Bezoldiging van de arbeid: algemeenheden. --- Loonpolitiek. --- Ongelijkheid en herverdeling van vermogens en inkomens. Inkomensbeleid. --- Strijd tegen de werkloosheid: algemeen. Theorie en beleid van de werkgelegenheid. Volledige werkgelegenheid. --- Werkloosheid: algemeenheden. Philipscurve. --- 331.5 Arbeidsmarkt. Werkgelegenheid --(algemeen) --- 330.564 Verdeling van nationaal inkomen. Inkomensverdeling --- Modèles économétriques --- Compensation --- Departmental salaries --- Earnings --- Pay --- Remuneration --- Salaries --- Wage-fund --- Wage rates --- Working class --- Income --- Labor costs --- Compensation management --- Cost and standard of living --- Prices --- Bezoldiging van de arbeid: algemeenheden --- Loonpolitiek --- Werkloosheid: algemeenheden. Philipscurve --- Strijd tegen de werkloosheid: algemeen. Theorie en beleid van de werkgelegenheid. Volledige werkgelegenheid --- Ongelijkheid en herverdeling van vermogens en inkomens. Inkomensbeleid --- Econometric models. --- Business, Economy and Management --- Economics --- WAGES - Econometric models
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This paper explores the effect of trade on the relative wage of less-skilled labor through its effect on world prices, which are typically exogenously given under the small open economy assumption. Using the 1995 international input-output data for APEC member countries, we numerically simulate a general equilibrium model to study the effects of abolishing existing tariffs under the assumption that each member country is large enough to affect the prices of goods and services produced in the region. We find that the responsiveness of prices plays an important role in easing a possible adverse effect of trade on relative wages.
Electronic books. -- local. --- Equilibrium (Economics) -- Econometric models. --- International trade -- Econometric models. --- Prices -- Econometric models. --- Wages -- Econometric models. --- Business & Economics --- Economic Theory --- Equilibrium (Economics) --- International trade --- Prices --- Wages --- Econometric models. --- Compensation --- Departmental salaries --- Earnings --- Pay --- Remuneration --- Salaries --- Wage-fund --- Wage rates --- Working class --- Income --- Labor costs --- Compensation management --- Cost and standard of living --- Exports and Imports --- Labor --- Taxation --- Neoclassical Models of Trade --- Empirical Studies of Trade --- Trade and Labor Market Interactions --- Existence and Stability Conditions of Equilibrium --- Trade Policy --- International Trade Organizations --- Wages, Compensation, and Labor Costs: General --- Trade: General --- Professional Labor Markets --- Occupational Licensing --- Wage Level and Structure --- Wage Differentials --- Labour --- income economics --- Public finance & taxation --- International economics --- Tariffs --- Imports --- Skilled labor --- Wage gap --- Taxes --- Tariff --- Labor market --- United States --- Income economics
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This paper assesses whether the scaling up of aid and the resulting increase in government spending that is needed to meet the Millennium Development Goals (MDGs) would be hampered by wage bill ceilings that are often part of government programs supported by the IMF's Poverty Reduction and Growth Facility (PRGF). Based on country case studies for 2003-05, the paper suggests that, in the past, wage bill ceilings have not restricted the use of available donor funds. Yet the paper offers a number of suggestions for further enhancing the flexibility of wage bill conditionality in PRGF-supported programs to respond to higher aid flows that may result in the future.
Economic assistance -- Econometric models. --- Electronic books. -- local. --- International Monetary Fund. --- Labor policy -- Econometric models. --- Wages -- Econometric models. --- Wages --- Labor policy --- Economic assistance --- Econometric models. --- Economic aid --- Foreign aid program --- Foreign assistance --- Grants-in-aid, International --- International economic assistance --- International grants-in-aid --- Labor --- State and labor --- Compensation --- Departmental salaries --- Earnings --- Pay --- Remuneration --- Salaries --- Wage-fund --- Wage rates --- Working class --- Government policy --- Internationaal monetair fonds --- International monetary fund --- Economic policy --- International economic relations --- Conditionality (International relations) --- Income --- Labor costs --- Compensation management --- Cost and standard of living --- Prices --- Public Finance --- Fiscal Policy --- Foreign Aid --- National Government Expenditures and Welfare Programs --- Wages, Compensation, and Labor Costs: General --- Wage Level and Structure --- Wage Differentials --- Public Sector Labor Markets --- Employment --- Unemployment --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- Incomes Policy --- Price Policy --- Labour --- income economics --- Civil service & public sector --- Public finance & taxation --- Public sector wages --- Wage adjustments --- Civil service reform --- Government wage bill --- Expenditure --- Civil service --- Ghana --- Income economics
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