Labor Market Issues: Health and Wages in Economics, Study notes of Development Economics

Download Labor Market Issues: Health and Wages in Economics and more Study notes Development Economics in PDF only on Docsity! Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Other Labour Market Issues Econ 491 Department of Economics University of Washington 23 October - Autumn 2007 Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Outline 1 Permanent Labour Nonmonitored Tasks Casual Tasks 2 Empirical Evidence Correlations between Health and Wages Economic Framework Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Shirk or not? Determining Wage Find wage to ensure that permanent labour performs the nonmonitorable tasks • Time horizon N • Shirking detected: Fired • If fired: Only casual labour • Gain from shirking: G • Loss = gain: G = N(wp − wc) Wage rate: G wp = N ( 1− wc wp ) Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Equilibrium • Combine technology and equation • Figure 13.14 (L̄ total labour) • Identical workers - differential treatment • Premium: wp > wc Question: Is it possible to bid down wp? Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Casual Task and Permanent Labour Seasons: • Slack - wage low • Peak - wage high Uncertainty: • Weather • Other factors • Labour demand unknown Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Height, Education and Wages Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Current BMI and Wages Other Labour Market Issues Econ 491 Permanent Labour Nonmonitored Tasks Casual Tasks Empirical Evidence Correlations between Health and Wages Economic Framework Labour Force Participation and Health