Unemployment rate and the real wage behaviour: a neoclassical hint for the Colombian labour market adjustment

2002 ◽  
Vol 9 (7) ◽  
pp. 425-428 ◽  
Author(s):  
Luis E. Arango ◽  
Carlos E. Posada
Keyword(s):  
Labour Market ◽  
Unemployment Rate ◽  
Real Wage ◽  
The Real

Real Wage Rate And Productivity Relationship In The Declining U.S. Steel Industry

2011 ◽  
Vol 4 (11) ◽  
Author(s):  
Amaechi Nkemakolem Nwaokoro
Keyword(s):  
Unemployment Rate ◽  
Real Wage ◽  
Steel Industry ◽  
Wage Rate ◽  
Nominal Wage ◽  
Data Set ◽  
The Real ◽  
Control Factors ◽  
Real Wage Rate ◽  
Steel Import

This study examines the relationship between the real wage rate and productivity in the U.S. steel industry in the critical period of 1963-1988. This period witnessed a declining steel output and employment, increasing productivity, and a slight increasing real wage rate. The severity of the decline was felt in the 1980s. The popular explanation focuses on the nominal wage rate relative to productivity (non-nominal value). The study is based on high-frequency monthly data set on output, employment, productivity, wage rate, factor prices, and national unemployment rate. Also control factors are constructed for the steel import protection and non-protection regimes. Some econometric modeling issues are addressed. Recognizing that productivity is stochastic and is potentially an endogenous variable, it is instrumented with a set of productivity-related variables including controls for various steel protection and non-protection regimes. Third, the wage in the industry is modeled as a function of exogenous productivity, price of steel products, national unemployment rate, and real interest rate. Serial correlation characterizes the data, and this is corrected with inter-temporal effect of the real wage rate, and with a differencing model. The main results of the study are threefold.First, OLS and Instrumental Variable (IV) estimates show that productivity is the key variable for explaining the real wage rate. Second, like in the literature, the study finds that heavy and autonomous capitalization has an impact on the rising productivity. Third, the study identifies an inter-temporal high real wage rate as the driving factor for explaining the short run real wage rate.These results are somewhat sensitive across specifications.

scholarly journals Real Wage Rate And Productivity Relationship In The Declining U.S. Steel Industry

2011 ◽  
Vol 5 (2) ◽  
Author(s):  
Amaechi Nkemakolem Nwaokoro
Keyword(s):  
Unemployment Rate ◽  
Real Wage ◽  
Steel Industry ◽  
Wage Rate ◽  
Nominal Wage ◽  
Data Set ◽  
The Real ◽  
Control Factors ◽  
Real Wage Rate ◽  
Steel Import

This study examines the relationship between the real wage rate and productivity in the U.S. steel industry in the critical period of 1963-1988. This period witnessed a declining steel output and employment, increasing productivity, and a slight increasing real wage rate. The severity of the decline was felt in the 1980s. The popular explanation focuses on the nominal wage rate relative to productivity (non-nominal value). The study is based on high-frequency monthly data set on output, employment, productivity, wage rate, factor prices, and national unemployment rate. Also control factors are constructed for the steel import protection and non-protection regimes. Some econometric modeling issues are addressed. Recognizing that productivity is stochastic and is potentially an endogenous variable, it is instrumented with a set of productivity-related variables including controls for various steel protection and non-protection regimes. Third, the wage in the industry is modeled as a function of exogenous productivity, price of steel products, national unemployment rate, and real interest rate. Serial correlation characterizes the data, and this is corrected with inter-temporal effect of the real wage rate, and with a differencing model. The main results of the study are threefold.First, OLS and Instrumental Variable (IV) estimates show that productivity is the key variable for explaining the real wage rate. Second, like in the literature, the study finds that heavy and autonomous capitalization has an impact on the rising productivity. Third, the study identifies an inter-temporal high real wage rate as the driving factor for explaining the short run real wage rate.These results are somewhat sensitive across specifications.

Chile

2017 ◽  
Author(s):  
Guillermo Cruces ◽  
Gary S. Fields ◽  
David Jaume ◽  
Mariana Viollaz
Keyword(s):  
Economic Growth ◽  
Labour Market ◽  
Unemployment Rate ◽  
Educational Level ◽  
International Crisis ◽  
Occupational Position ◽  
Rapid Economic Growth ◽  
Poverty And Inequality

During the 2000s Chile achieved rapid economic growth and improved most labour market indicators: the unemployment rate fell; the mix of employment by occupational position and sector improved; the educational level of the employed population, the percentage of registered workers, and labour earnings increased; and all poverty and inequality indicators decreased. The economy suffered a recession during the international crisis of 2008, but recovered quickly. The chapter shows that some labour market indicators were negatively affected by the crisis. The unemployment rate was the only indicator that did not return to its pre-crisis level by the end of the period studied.

The Fight against Idleness

2018 ◽  
Author(s):  
Anthony F. Heath ◽  
Elisabeth Garratt ◽  
Ridhi Kashyap ◽  
Yaojun Li ◽  
Lindsay Richards
Keyword(s):  
Young People ◽  
Labour Market ◽  
Ethnic Minorities ◽  
Unemployment Rate ◽  
Low Income ◽  
Young Men ◽  
Dark Side ◽  
Educational Expansion ◽  
Left Behind ◽  
Wide Range

Unemployment has a wide range of adverse consequences over and above the effects of the low income which people out of work receive. In the first decades after the war Britain tended to have a lower unemployment rate than most peer countries but this changed in the 1980s and 1990s, when Britain’s unemployment rate surged during the two recessions—possibly as a result of policies designed to tackle inflation. The young, those with less education, and ethnic minorities have higher risks of unemployment and these risks are cumulative. The evidence suggests that the problems facing young men with only low qualifications became relatively worse in the 1990s and 2000s. This perhaps reflects the dark side of educational expansion, young people with low qualifications being left behind and exposed in the labour market.

Consumers Preferences, Subsistence and Real Wage

1993 ◽  
Author(s):  
D. Andrews
Keyword(s):  
Political Economy ◽  
Real Wage ◽  
Consumer Preference ◽  
Sharp Contrast ◽  
Index Number ◽  
Neoclassical Theory ◽  
The Real ◽  
Individual Consumer ◽  
Classical Political Economy

In classical political economy, the real wage derives its reality from its association with a given set of products that provides for the subsistence of workers through time. In neoclassical theory the connection between the real wage and a given set of products is broken, because the restriction of workers’ consumption to a particular set of products conflicts with the idea of individual consumer preference. Thus, the ‘reality’ of the real wage in neoclassical theory is grounded differently, in a particular standard of value that can be called an index number standard. The difficulties involved with this construction raise questions about the theoretical adequacy of the notion of real wage itself. In particular, this leads to a conclusion that stands in sharp contrast to the empiricist proclamations of neoclassical theory.

scholarly journals The labour market of the Silesian voivodeship (Poland), and its determinants

2014 ◽  
Vol 2 (3) ◽  
pp. 13-23
Author(s):  
Franciszek Kłosowski
Keyword(s):  
Labour Market ◽  
Unemployment Rate ◽  
Labour Force ◽  
Technological Factor ◽  
Population Decline ◽  
Economic Factor ◽  
Ageing Population ◽  
Difficult Situation ◽  
High Volatility ◽  
Business Entities

AbstractThe aim of this study was to characterise the labour market of the Silesian voivodeship and its determinants between 2010 and 2012, although in order to show certain trends in changes data from the beginning of the 21st century are also used as a basis whereas from the more forward-looking perspective, projections up until 2020 were used. This market is very important from the nationwide perspective, and this is due to its complexity, size (it concentrates 2 million employed people, that is 14.4% of the whole workforce of Poland) and specificity (industry still plays a crucial role). In order to achieve the objective indicated above, a set of measures relating to the number of employed people, business entities or GDP were used for the purpose of the analysis. The presented material shows the high volatility of the situation on the labour market both at the voivodeship level and individual communities – this is particularly true of the number of employed people and the rate of unemployment. An advantage of the newly created jobs over those that are shed which has been continuously recorded since 2008 and a decrease in the unemployment rate are positive symptoms. Katowice being the largest market and, moreover, characterised by the highest rank range of its impact and lowest unemployment rate have gained a dominant position in the regional labour market. Bielsko-Biała, Tychy, Gliwice and Bieruń-Lędziny County also clearly stand out against the background of other communities. The most difficult situation can be observed in Bytom, Świętochłowice, Piekary Śląskie and in the counties located in the northern part of the voivodeship, that is Częstochowa, Myszków and Zawiercie. Not only today but also in the coming decade, in terms of demand the labour market of the Silesian voivodeship will be strongly affected by its demographic situation; population decline, ageing population, migration, including, in particular, foreign migration will cause a decline in the labour force. By contrast, the labour supply will depend on an economic factor, that is mainly an improvement in the economic situation in Poland and around the world and a reduction in the cost of labour (external determinants). In the next few years the role of innovation (including the technological factor) which will affect the labour demand in terms of quantity and, perhaps to a greater extent, in terms of quality (changes in the structure of the labour market) will become more and more significant.

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