A Labor Market Theory of Earnings Distribution

1997 ◽  
Author(s):  
Simon Charles Parker
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Beta Distribution ◽  
Distribution Density ◽  
Market Theory ◽  
Theoretical Rationale ◽  
Earnings Distribution ◽  
Distribution Density Function ◽  
The Relationship ◽  
Special Case

A simple theory of the labor market is presented in which the short end of the market sells. A flexible parameterisation of the theory yields an earnings distribution density function which is closely approximated by the well-known beta and gamma specifications. Apart from providing a theoretical rationale for these tractable and closefitting specifications, the theory suggests that the parameters of the beta distribution (this distribution encompassing the gamma as a special case) can be interpreted in terms of the structure of labor markets. This has implications for why earnings distributions take their commonly observed positive skew, as well as for wider issues including the relationship between employment and equality.

Immigration and Labor Market Outcomes in U.S. Metropolitan Areas

2019 ◽  
Vol 63 (4) ◽  
pp. 630-652
Author(s):  
Allen Hyde ◽  
Michael Wallace
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Labor Market Outcomes ◽  
Economic Restructuring ◽  
The United States ◽  
Earnings Inequality ◽  
Demand Side ◽  
Least Squares Regression ◽  
Market Outcomes ◽  
The Relationship

Two broad orientations have motivated scholarship on the relationship between immigration and labor market outcomes in the United States. The first, the supply-side perspective, often focuses on how immigration affects a variety of outcomes such as unemployment, casualization, and earnings inequality. The second, the demand-side perspective, generally contends that these labor market outcomes result mainly from economic restructuring that subsequently attracts immigrants to labor markets. Previous studies have often reached divergent conclusions due to differing assumptions about the direction of causality in these relationships. In this paper, we use three-stage least squares regression, a technique that allows for nonrecursive relationships, to adjudicate the direction of causality between immigration and labor market outcomes. Using 2010 data for 366 U.S. metropolitan statistical areas, we find support for the demand-side perspective, or that economic restructuring results in higher unemployment, casualization, and earnings inequality, which subsequently increases levels of immigration in metropolitan labor markets.

Youth Employment, Informality, and Precarity in the Global South

2021 ◽  
Author(s):  
Shailaja Fennell
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Labor Migration ◽  
Global South ◽  
Employment Relationship ◽  
Theory Building ◽  
Market Theory ◽  
Rural Labor ◽  
Increase Productivity ◽  
Standard Employment Relationship

Characteristics of labor markets are often assumed to be universal, when in fact they are peculiar to patterns of employment in Europe and North America. This essay makes these universalist assumptions about labor markets for youth explicit, challenging their foundational claims in relation to trends in parts of the Global South. Urbanization, the Standard Employment Relationship (SER), and the notions of precarity are all analyzed for their Northern biases. The work of early labor market theorist W. Arthur Lewis is then explored, critiquing how his theory was reduced to one aspect—rural labor migration to urban factory work to increase productivity—when it had complex social, political, educational, and policy-related implications. Southern scholars should not be interpreted in terms of their relevance to Northern processes. They should be grappled with on their own terms, in relation to the Southern contexts from which they speak. Finally, an agenda for Southern labor market theory building is offered.

scholarly journals A GENERALIZED LABOR MARKET THEORY: INEQUALITY AS LABOR DISCIPLINE DEVICE

2013 ◽  
Vol 70 (276) ◽  
Author(s):  
Adolfo Figueroa
Keyword(s):  
Developing Countries ◽  
Labor Market ◽  
Theoretical Model ◽  
Labor Markets ◽  
Microeconomic Theory ◽  
Market Theory ◽  
Labor Discipline ◽  
Empirical Regularities ◽  
The Common

The standard microeconomic theory of labor market assumes that unemployment operates as the labor discipline device in advanced countries. What is this device in developing countries? This paper seeks to give an answer to this question by constructing a new theoretical model and by confronting its predictions against a set of empirical regularities that characterize the functioning of labor markets in developing countries. In comparing the two models, the paper shows the existence of a generalized labor market theory in which inequality among workers constitutes the common labor discipline device, which just takes different forms in advanced and developing countries.

International Segmentation of Labor

2006 ◽  
Author(s):  
Harald Bauder
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Market Segmentation ◽  
The Other ◽  
Cultural Representations ◽  
Labor Market Segmentation ◽  
Other Hand ◽  
Critical Components ◽  
The Relationship ◽  
Means Of Production

The relationship between migration and labor markets can be approached from different conceptual and philosophical angles. In this chapter, I draw on labor market segmentation theory to examine how the international mobility of workers interlinks with the international segmentation of labor. In addition, I highlight two aspects of this relationship that have been sidelined in the existing literature but that are important to understanding how this relationship works. The first aspect is the notion of citizenship. Although this notion has received considerable attention in the social sciences in recent years, it has been neglected as a driving force of the segmentation of labor. The second aspect is the cultural representation of migrating populations and workers, which contributes vitally to the regulation of labor markets. The structure of this chapter follows the intention to convey a particular theoretical perspective and to highlight particular aspects of this perspective. First, I present segmentation theory as an entry point into a discussion of the relationship between international migration and labor market regulation. Second, I introduce the notion of citizenship to this discussion. Third, I present cultural representations as critical components in the international segmentation of labor markets. To explain labor market segmentation theory one may begin with Karl Marx. Marx ([1867] 2001) called labor “variable capital” and the means of production “constant capital.” Labor is variable because workers can be hired and fired in response to business and seasonal cycles. The means of production, on the other hand, are constant because they constitute a fixed investment and stay idle in periods of economic slowdown. Segmentation theory begins with the premise that the idleness of machinery and other fixed investments can be prevented or reduced by dividing production into two distinct segments. The primary segment is capital-intensive; high levels of technology ensure the efficient use of the workforce. In times of economic contraction, this primary sector keeps operating to satisfy the basic demand that still exists for products. The secondary segment, on the other hand, is labor-intensive, with only minimal investments in machinery and technology.

Concentration in the Labor Market for Public School Teachers

ILR Review ◽  
1986 ◽  
Vol 39 (4) ◽  
pp. 573-584 ◽  
Author(s):  
James Luizer ◽  
Robert Thornton
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Bachelor's Degree ◽  
Public School Teachers ◽  
Teacher Labor Market ◽  
Teacher Labor Markets ◽  
Wage Effects ◽  
Monopsony Power ◽  
The Relationship ◽  
Teacher Labor

Recent studies that have investigated the relationship between the monopsony power of school districts and teachers' salaries have reached conflicting conclusions. The authors of this paper argue that the discrepancies among previous studies may be due to the arbitrary demarcation of the boundaries of teacher labor markets and the use of faulty measures of monopsony. Using a new procedure for defining teacher labor market boundaries and several alternative indices of concentration, this study finds evidence of monopsonistic activity in local teacher labor markets in Pennsylvania. The monopsony wage effects are small, however, and are present mainly at the mid-to-upper ranges of the bachelor's degree salary scale.

Structural Imbalances in Canadian Labor Markets

1994 ◽  
Author(s):  
S. Gera ◽  
S. S. Rahman ◽  
J. L. Arcand
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Growth Rates ◽  
Employment Growth ◽  
Dominant Factor ◽  
Industrial Sectors ◽  
Potential Sources ◽  
Interregional Disparities ◽  
The Relationship

The nature of structural imbalances in the Canadian Labor market is identified by analyzing the relationship between unemployment and job vacancies. Three potential sources of imbalances are examined: (1) the regional nature of the Canadian economy; (2) the rise in the incidence of long-term unemployment (of 12 months or more); and (3) differences in the rate of growth of unemployment across industrial sectors. The major findings are: growing structural imbalances; an increase in long-term unemployment was the major cause of the shift in most cases; both inter-and intraregional effects played a significant role, but interregional disparities were the dominant factor; and the dispersion in employment growth rates across industrial sectors did not seem to play a role.

سحوق العمل العراقي من التقليدية الى الرقمية – تحديات ومعالجات

2021 ◽  
Vol 2021 (69) ◽  
pp. 114-130
Author(s):  
هند عبد المجيد حمادي
Keyword(s):  
Human Capital ◽  
Labor Market ◽  
Labor Markets ◽  
Digital Technology ◽  
Digital Technologies ◽  
Transformation Process ◽  
Digital Transformation ◽  
Technology Sector ◽  
The Relationship

The study confirms that digital technologies have become closely related to labor markets, by providing the labor market with qualifications, human capital with skills and high experience, and on the efficiency of the performance of the digital transformation process, and therefore the hypothesis of the study is based on the existence of positive repercussions for the digital economy and investment in it in order to address the challenges that Facing the Iraqi labor market and then the digital transformation process, the study aims to demonstrate the reality of the digital technology sector in the Iraqi labor market by monitoring the qualitative indicators related to digital transformation, and then analyzing the reality of the relationship between digital technologies and the labor market. The importance of the study lies in the link between digital technologies and the labor market and the role of digital technologies in stimulating the labor market.

scholarly journals EMPLOYMENT, UNEMPLOYMENT, LABOR MARKET IN THE INSTITUTIONAL STRUCTURE OF SOCIAL AND LABOR RELATIONS

2021 ◽  
pp. 21-29
Author(s):  
V. I. Belyaev ◽  
O. V. Kuznetsova
Keyword(s):  
Labor Market ◽  
Labor Markets ◽  
Labor Relations ◽  
Institutional Structure ◽  
Technological Systems ◽  
Production Relations ◽  
The Relationship

The article presents the results of theoretical researches devoted to the problems of institutional transformations of social and labor relations in the labor markets. The ratio of categories of employment, unemployment, labor market in the context of contradictory interactions of developing technological systems (productive forces) and social and labor (production) relations is presented. The hypothesis is substantiated that social and labor relations in the labor markets take the form of institutions; a system of rules, restrictions, mechanisms that determine the behavior of employers and workers in the labor market, thereby influencing employment and unemployment. A methodological scheme for the study of labor markets is proposed in order to identify contradictions in the relationship between developing technologies and social and labor relations. It is proposed to use it in the development of specific methods for managing the development of institutions of social and labor relations in the labor markets of regions, the country in order to reduce the level of tension in the field of employment.

Sign in / Sign up

Export Citation Format

Share Document