Found 37 article(s) for author 'Labor'

Productivity and Pay: is the link broken?

Productivity and Pay: is the link broken? Lawrence Summers, November 2017, Paper, “After growing in tandem for nearly 30 years after the second world war, since 1973 an increasing gap has opened between the compensation of the average American worker and her/his average labor productivity. Brynjolffson and McAfee (2014) use the phrase “the great decoupling” to describe this phenomenon; Bivens and Mishel (2015) refer to it as a “historic divergence”. In recent years discussion has centered on understanding why this phenomenon has occurred and how policy should respond.Link

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The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration

The Productivity Slowdown and the Declining Labor Share: A Neoclassical Exploration. Elhanan Helpman, October 2017, Paper, “We explore the possibility that a global productivity slowdown is responsible for the widespread decline in the labor share of national income. In a neoclassical growth model with endogenous human capital accumulation a la Ben Porath (1967) and capital-skill complementarity a la Grossman et al. (2017), the steady-state labor share is positively correlated with the rates of capital-augmenting and labor-augmenting technological progress. We calibrate the key parameters describing the balanced growth path to U.S. data for the early post-war period and find that a one percentage point slowdown in the growth rate of per capita income can account for between one half and all of the observed decline in the US labor share.Link

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It’s Time to Balance the Power between Workers and Employers

It’s Time to Balance the Power between Workers and Employers. Lawrence Summers, September 3, 2017, Opinion, “The central issue in American politics is the economic security of the middle class and their sense of opportunity for their children. As long as a substantial majority of American adults believe that their children will not live as well as they did, our politics will remain bitter and divisive.Link

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The Slow Recovery in Output after 2009

The Slow Recovery in Output after 2009. James Stock, 2017, Paper, “The U.S. economy has been expanding slowly since the recession trough in 2009. Though unemployment has declined at about the same rate as in previous recoveries, output has grown much more slowly than in the past. We explore explanations for the shortfall in output growth, using a quantitative decomposition based on growth economics. Two components of the decomposition stand out: slow growth in productivity, and a growing shortfall of labor-force participation relative to its demographic determinants. The slow growth in both components predated the recession. Our analysis gives a full treatment to cyclical effects.Link

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Informal worker organising and mobilisation

 Informal worker organising and mobilisation, Martha Chen, 2017, Book Chapter, “The Routledge Companion to Planning in the Global South offers an edited collection on planning in parts of the world which, more often than not, are unrecognised or unmarked in mainstream planning texts. In doing so, its intention is not to fill a ‘gap’ that leaves this ‘mainstream’ unquestioned but to re-theorise planning from a deep understanding of ‘place’ as well as a commitment to recognise the diverse modes of practice that come within it.Link

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Labor Supply and the Value of Non-Work Time: Experimental Estimates from the Field

Labor Supply and the Value of Non-Work Time: Experimental Estimates from the Field. , July 2017, Paper, “We use a field experiment to estimate the marginal value of non-work time (MVT). During a national application process for phone survey and data entry positions, we randomly offered applicants alternative wage-hour bundles. Jobseeker choices over these bundles yield estimates for the MVT as a function of hours worked. These quantities trace out a labor supply relationship. As predicted by the conventional model of the allocation of time, the substitution effect is positive. Individual labor supply is highly elastic at low hours and becomes more inelastic at higher hours. For unemployed job applicants, the opportunity cost of a full-time job due to lost leisure, household production, and other non-work activities is approximately 60% of their estimated market wage. A similar estimate is found when we reproduce elements of this experiment in a nationally-representative survey.Link

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Wages, Prices, and Employment in a Keynesian Long Run

Wages, Prices, and Employment in a Keynesian Long Run. Stephen Marglin, 2017, Paper, “The central question this paper addresses is the same one I explored in my joint work with Amit Bhaduri 25 years ago: under what circumstances are high wages good for employment? I extend our 1990 argument in three directions. First, instead of mark-up pricing, I model labor and product markets separately. The labor supply to the capitalist sector of the economy is assumed à la Lewis to be unlimited. Consequently the wage cannot be determined endogenously but is fixed by an extended notion of subsistence based on Smith, Ricardo, and Marx. For tractability the product market is assumed to be perfectly competitive. The second innovation is to show how disequilibrium adjustment resolves the overdetermination inherent in the model.Link

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The Role of Unemployment in the Rise in Alternative Work Arrangements

The Role of Unemployment in the Rise in Alternative Work Arrangements. Lawrence Katz, 2017, Paper, “Much evidence indicates that the traditional nine-to-five employee-employer relationship is in decline. Although comprehensive, high-frequency data on US work arrangements are not available, the trend appears to have begun before the advent of the platform economy and the spread of online gig work.” Link

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The Expanding Gender Earnings Gap: Evidence from the LEHD-2000 Census

The Expanding Gender Earnings Gap: Evidence from the LEHD-2000 Census. Claudia Goldin, 2017, Paper, “The gender earnings gap is an expanding statistic over the lifecycle. We use the LEHD Census 2000 to understand the roles of industry, occupation, and establishment 14 years after leaving school. The gap for college graduates 26 to 39 years old expands by 34 log points, most occurring in the first 7 years. About 44 percent is due to disproportionate shifts by men into higher-earning positions, industries, and firms and about 56 percent to differential advances by gender within firms. Widening is greater for married individuals and for those in certain sectors. Non-college graduates experience less widening but with similar patterns.Link

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Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit

Survival of the Fittest: The Impact of the Minimum Wage on Firm Exit. Michael Luca, April 11, 2017, Paper, “We study the impact of the minimum wage on firm exit in the restaurant industry, exploiting recent changes in the minimum wage at the city level. The evidence suggests that higher minimum wages increase overall exit rates for restaurants. However, lower quality restaurants, which are already closer to the margin of exit, are disproportionately impacted by increases to the minimum wage. Our point estimates suggest that a one dollar increase in the minimum wage leads to a 14 percent increase in the likelihood of exit for a 3.5-star restaurant (which is the median rating), but has no discernible impact for a 5-star restaurant (on a 1 to 5 star scale).Link

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