The Role of Profits in Wage Determination
The Role of Profits in Wage Determination

Author: Marcello M. Estevão

Publisher:

Published: 1998

Total Pages:

ISBN-13:

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We estimate the effect of firms' profitability on wage determination for the American economy. Two standard bargaining models are used to illustrate the problems caused by the endogeneity of profits-per-worker in a real wage equation. The profit-sharing parameter can be identified withinstruments which shift demand. Using information from the input-output table, we create demand-shift variables for 63 4-digit sectors of the US manufacturing sector. The I.V. estimates show that profit-sharing is a relevant and widespread phenomenon. The elasticity of wages with respect to profits-per-worker is seven times as large as OLS estimates here and in previous papers. Sensitivity analysis of the profit-sharing parameter controlling for the extent of unionization and product market concentration reinforces our results.

Marginal Revenue Productivity Theory of Wages
Marginal Revenue Productivity Theory of Wages

Author: Fouad Sabry

Publisher: One Billion Knowledgeable

Published: 2024-02-04

Total Pages: 282

ISBN-13:

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What is Marginal Revenue Productivity Theory of Wages It is a model of wage levels that is set to match to the marginal revenue product of labor, which is the increment to revenues generated by the increment to output created by the last laborer employed. The marginal revenue productivity theory of wages is a model of why wage levels are set to match to the marginal revenue product of labor. In a model, this is justified by the premise that the company is maximizing its profits and, as a result, would only employ labor up to the point where the marginal labor expenses are equal to the marginal income generated by the company. This is an example of a model that is seen in neoclassical economics. How you will benefit (I) Insights, and validations about the following topics: Chapter 1: Marginal revenue productivity theory of wages Chapter 2: Perfect competition Chapter 3: Profit maximization Chapter 4: Price elasticity of demand Chapter 5: Marginal cost Chapter 6: Production function Chapter 7: Marginal product Chapter 8: Diminishing returns Chapter 9: Marginal revenue Chapter 10: Cournot competition Chapter 11: Ramsey problem Chapter 12: Cost curve Chapter 13: Solow-Swan model Chapter 14: Harrod-Domar model Chapter 15: Marginal rate of technical substitution Chapter 16: Supply (economics) Chapter 17: Incremental capital-output ratio Chapter 18: Marginal product of capital Chapter 19: Marginal product of labor Chapter 20: Robinson Crusoe economy Chapter 21: Monopoly price (II) Answering the public top questions about marginal revenue productivity theory of wages. (III) Real world examples for the usage of marginal revenue productivity theory of wages in many fields. Who this book is for Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Marginal Revenue Productivity Theory of Wages.

Principles of Wage Determination
Principles of Wage Determination

Author: T. S. Papola

Publisher: Bombay : Somaiya Publications

Published: 1970

Total Pages: 264

ISBN-13:

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Study of wage determination factors in the cotton textile industry in India from 1939 to 1962 - covers theoretical aspects, economic implications of labour supply and labour demand, labour productivity, the cost of living, labour costs and profitability, the impact of trade union policies on the rise in wages, etc. Bibliography pp. 233 to 239 and statistical tables.

Economics of Wage Determination
Economics of Wage Determination

Author: Heinz König

Publisher: Springer

Published: 1990-03-07

Total Pages: 373

ISBN-13: 9783540523246

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Heinz Konig This volume contains fourteen papers, all except one were presented and discussed at an international seminar of the Sonderforschungsbereich 5, University Mannheim, on October 5th-7th, 1987. While the planned overall theme was originally limited to the problems of wage determination in their relation to unemployment, the papers presented cover a much broader field and treat the problems from a microeconomic as well as from a macroeconomic perspective. It was this mixture of methodological approaches which, at least in my mind, stimulated the discussion and have documented the advances in labor market and macroeconomic theory in recent years. Rising and persistently high unemployment rates in western countries since the mid 70's reshifted the economists' attention to the role of wages with respect to labor supply and demand. Most markets seem to clear, yet the labor market does not. Macro economic thinking in the 50's and 60's, following the Keynesian paradigm, attributed this missing "self-correction"-property to the rigidity of nominal wages. However, it was soon recognized that wages could be rigid without any implications for macroeconomic adjustment. As long as profits are sufficiently flexible, rigid wages do not prevent prices from reacting to fluctuations in nominal demand. Furthermore, it is less the nominal wage stickiness than the real wage rigidity which impedes market clearing. Most neo-Keynesian theories in recent years, therefore, try, given rational behavior of economic agents, to disentangle factors which are responsible for real rigidities in labor markets as well as in product markets.

Wage-Led Growth
Wage-Led Growth

Author: Engelbert Stockhammer

Publisher: Springer

Published: 2013-12-03

Total Pages: 329

ISBN-13: 1137357932

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This volume seeks to go beyond the microeconomic view of wages as a cost having negative consequences on a given firm, to consider the positive macroeconomic dynamics associated with wages as a major component of aggregate demand.