According to Noam Chomsky, analysis of the psychological implications of wage slavery goes back to the Enlightenment era. Other variables that affect the labour supply decision, and can be readily incorporated into the model, include taxation, welfare, work environment, and income as a signal of ability or social contribution. If the wage rate increases, this individual’s constraint line pivots up from X,Y1 to X,Y2. To understand what effect this might have on the decision of how many hours to work, one must look at the income effect and substitution effect.

labor economics term paper topics

All of these negative aspects of jobs lead to lower supplies of labor at any wage rate and hence higher wages. EPI proposes reforms that would allow the immigration system to to respond and adjust to the shifting needs of the U.S. labor market while improving wages and safeguarding labor standards for American and immigrant workers. EPI’s research on economic growth assesses how policymaking and economic institutions either help or hinder efforts to insure that the U.S. economy is operating at full employment and to generate sustainable growth in average living standards as rapidly as possible.

Labor Economics Essays Examples

First, assume that the wage and other monetary compensation is the most important determinant of behavior. This allows the construction of a model that has wages on the y-axis and quantity exchanged on the x-axis. Everything else held fixed, buyers and sellers will respond most directly to price signals exchanged between the two groups. Second, assume that workers are somewhat homogeneous—that is, that workers can be easily substituted for one another in any particular market. Finally, assume that wages are flexible; they can move up or down in response to market signals.

Case managers provide individual and comprehensive support to employees who have become incapable of working. Using data from a large insurance company we find that overall, 43.9% of the people in our sample c… This paper focuses on the structure and extent of wage differences among graduates of different higher-education institutions in Germany. This labor economics term paper topics journal has changed to fully open access publishing in 2016 and archives only fully open access articles. To access all articles including subscription articles and the open access articles available on this site please visit the archive on SpringerLink. Another one, of course, being the capitalists’ alleged theft from workers via surplus-value.


In 1579, Thomas Churchyard defined as nobles, “Merchauntes that sail forrain countreys,” a statement that underscores the importance of generating wealth. If the Philippine government set the exchange rate labor economics term paper topics at 50 peso, they would need to sell 20 pesos per month, because supply would be 60 and demand would be 80. Japan’s economy grew for a seventh quarter in Q3, 2003 the longest expansionary phase since 1997.

labor economics term paper topics

It leads to an extended lack of income for individuals and their families and can lead to serious psychological problems, including depression, that can lead to other social ills, including domestic violence and substance abuse. The severity of these problems often depends on the social safety provided by the government for the unemployed, which differs widely across countries around the world. Note that not every member of a population is included in the labor force, and not every person who is pursuing productive activities in an economy is included in the labor force. For example, discouraged workers, defined as people who are not working and have stopped seeking work, are not part of the labor force.

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When looking at the overall macroeconomy, several types of unemployment have been identified, which can be separated into two categories of natural and unnatural unemployment. As noted above, immigrants are almost certain to account for a significant portion of the growth in the labor force in the next decade. Immigrants enter the United States seeking higher income and living standards than they have experienced in their home countries. Given the inequality in the distribution of income and wealth around the globe, as long as immigrants can gain access to the American marketplace, the investment in migration is more than worth the costs in terms of personal and family dislocation and downward job mobility.

  1. Besides financial institutions, transnational corporations have a saying in the economic development of a country.
  2. Junior and senior partners can be relatively easily substituted for one another as tax forms are prepared.
  3. In the paper, we investigate spatial relationship on the labor market of Poznań agglomeration with unique data on job vacancies.
  4. The ILO Department of Statistics is the focal point to the United Nations on labour statistics.
  5. If the demand and supplies are extremely elastic and sensitive to the legislation modifications, the increase in unemployment would be tremendous.
  6. The unemployment level is defined as the labour force minus the number of people currently employed.

Toward the end of the recession, although other aspects of an economy might be showing marked signs of improvement, the unemployment rates might still be rising. Thus, it is very important that economists and policy makers use movements in unemployment rates with extreme care when making predictions about the health of the overall economy. In response to this exploitation of workers by monopsonistic employers, workers formed unions—collective organizations of sellers that formed to gain some bargaining power in negotiations with their employers over the terms of their contracts. These unions gained legal status in most countries around the world in the late nineteenth and early twentieth centuries. However, in some countries that are at the earlier stages of industrialization, unionization and other types of worker movements may still be illegal or nonexistent. The labor demand curve, described as for the perfectly competitive market in Figure 14.1, depends on the output market in which the firm sells its final product and the productivity of its workers.

Justice perceptions of occupational training subsidies: findings from a factorial survey

This is where Keynes came to the conclusion that the key is to observe the changes in the inventories in order to drive production (hat Causes a Recession to be a Recession, n.d.). The firm is an economic institution in a market system with the behavior of the firm reflecting the result of the decisions that were economic in nature that the manager of the firm made.

  1. This empirically based conclusion is consistent with the law of supply that governs most market settings.
  2. There are many other taste models other than these that Gary Becker has made to explain discrimination that causes differences in hiring in wages in the labour market.
  3. For example, Africa pays more to the IMF and World Bank, than it collects in credit from them, and this leads to low living standards, poor education and health systems and undeveloped infrastructure.
  4. It is typical in economic models for greater availability of capital for a firm to increase the MRP of the worker, all else equal.
  5. Income and other employment taxes play an important role in providing incentives for workers to participate in labor markets.
  6. Even though this type of labour is unpaid it can nevertheless play an important part in society if not abused by employers.
  7. For example, it makes little sense for the United States to try to grow bananas, given the excessive cost this would entail, versus importing them from the Southern hemisphere.

It might be easy to substitute junior for senior account managers, but it is impossible to substitute callers for telephones. EPI’s Program on Race, Ethnicity and the Economy works to advance policies that ensure racial and ethnic minorities participate fully and benefit equitably as workers in the American economy. To improve the speed and quality of decisions, Labour Economics encourages authors to provide information relating to prior submission of the paper at other journals. Please include the editor’s letter and referee reports accompanied by a response letter.

Discrimination and inequality

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