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Efficiency Wages
The term efficiency wages (or rather "efficiency earnings") was introduced by Alfred Marshall to denote the wage per efficiency unit of labor. Marshallian efficiency wages would make employers pay different wages to workers who are of different efficiencies such that the employer would be indifferent between more-efficient workers and less-efficient workers. The modern use of the term is quite different and refers to the idea that higher wages may increase the efficiency of the workers by various channels, making it worthwhile for the employers to offer wages that exceed a market-clearing level. Optimal efficiency wage is achieved when the marginal cost of an increase in wages is equal to the marginal benefit of improved productivity to an employer.Mankiw, Gregory N. & Taylor, Mark P. (2008), ''Macroeconomics'' (European edition), pp. 181–182 In labor economics, the "efficiency wage" hypothesis argues that wages, at least in some labour markets, form in a way that is not mar ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Alfred Marshall
Alfred Marshall (26 July 1842 – 13 July 1924) was an English economist, and was one of the most influential economists of his time. His book '' Principles of Economics'' (1890) was the dominant economic textbook in England for many years. It brought the ideas of supply and demand, marginal utility, and costs of production into a coherent whole. He is known as one of the founders of neoclassical economics. Life and career Marshall was born at Bermondsey in London, second son of William Marshall (1812–1901), clerk and cashier at the Bank of England, and Rebecca (1817–1878), daughter of butcher Thomas Oliver, from whom, on her mother's death, she inherited property. William Marshall was a devout strict Evangelical, "author of an Evangelical epic in a sort of Anglo-Saxon language of his own invention which found some favour in its appropriate circles" and of a tract titled ''Men's Rights and Women's Duties''. Marshall had two brothers and two sisters; a cousin was the eco ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Carl Shapiro
Carl Shapiro (born 20 March 1955) is an American economist and academic who serves as the Transamerica Professor of Business Strategy at the University of California, Berkeley's Haas School of Business. He is the co-author, along with Hal Varian of '' Information Rules: A Strategic Guide to the Network Economy'', published by the Harvard Business School Press. On February 23, 2011, ''The Wall Street Journal'' reported that President Barack Obama intended to nominate Shapiro to his Council of Economic Advisers. Shapiro served as Deputy Assistant Attorney General for Economics in the Antitrust Division of the U.S. Department of Justice (1995–1996). He is a Senior Consultant with Charles River Associates and has consulted extensively for a wide range of private clients as well as for the U.S. Department of Justice and the Federal Trade Commission. Shapiro was again the Deputy Assistant Attorney General for Economics of the Antitrust division of the Justice Department from 2009 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Correlation And Dependence
In statistics, correlation or dependence is any statistical relationship, whether causal or not, between two random variables or bivariate data. Although in the broadest sense, "correlation" may indicate any type of association, in statistics it usually refers to the degree to which a pair of variables are ''linearly'' related. Familiar examples of dependent phenomena include the correlation between the height of parents and their offspring, and the correlation between the price of a good and the quantity the consumers are willing to purchase, as it is depicted in the so-called demand curve. Correlations are useful because they can indicate a predictive relationship that can be exploited in practice. For example, an electrical utility may produce less power on a mild day based on the correlation between electricity demand and weather. In this example, there is a causal relationship, because extreme weather causes people to use more electricity for heating or cooling. Howev ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reservation Wage
In labor economics, the reservation wage is the lowest wage rate at which a worker would be willing to accept a particular type of job. This wage is a theoretical representation of the hourly rate at which an individual values their own leisure time. A job offer involving the same type of work and the same working conditions, but at a lower wage rate, would be rejected by the worker. In this case, based on the reservation wage theory, the individual would be better off not working as they value their leisure at a higher rate than the wage they would receive for working. An individual's reservation wage may change over time depending on a number of micro and macro-economic factors, like changes in the individual's overall wealth, changes in marital status or living arrangements, length of unemployment, and health and disability issues. For example, an individual who has high household production activities may have a higher reservation wage, as the wage must exceed the benefit ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Dual Labor Market
Dual or Duals may refer to: Paired/two things * Dual (mathematics), a notion of paired concepts that mirror one another ** Dual (category theory), a formalization of mathematical duality *** see more cases in :Duality theories * Dual (grammatical number), a grammatical category used in some languages * Dual county, a Gaelic games county which in both Gaelic football and hurling * Dual diagnosis, a psychiatric diagnosis of co-occurrence of substance abuse and a mental problem * Dual fertilization, simultaneous application of a P-type and N-type fertilizer * Dual impedance, electrical circuits that are the dual of each other * Dual SIM cellphone supporting use of two SIMs * Aerochute International Dual a two-seat Australian powered parachute design Acronyms and other uses * Dual (brand), a manufacturer of Hifi equipment * DUAL (cognitive architecture), an artificial intelligence design model * DUAL algorithm, or diffusing update algorithm, used to update Internet protocol routing t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Joseph Stiglitz
Joseph Eugene Stiglitz (; born February 9, 1943) is an American New Keynesian economist, a public policy analyst, and a full professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is a former senior vice president and chief economist of the World Bank. He is also a former member and chairman of the (US president's) Council of Economic Advisers. He is known for his support of Georgist public finance theory and for his critical view of the management of globalization, of ''laissez-faire'' economists (whom he calls " free-market fundamentalists"), and of international institutions such as the International Monetary Fund and the World Bank. In 2000, Stiglitz founded the Initiative for Policy Dialogue (IPD), a think tank on international development based at Columbia University. He has been a member of the Columbia faculty since 2001, and received the university's highest academic rank ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ekkehart Schlicht
Ekkehart Schlicht (born in 1945, Kiel, Germany) is a German economist. He is best known for his work in labor economics, custom in the economy, and his contributions to the field of institutional economics. Early life Ekkehart Schlicht was born in 1945 in the Northern German city of Kiel. He attended the Freie Waldorfschule Rendsburg (Schleswig-Holstein) where he completed his Abitur in 1965. Studies Schlicht attended the University of Kiel from 1965 to 1967, and University of Regensburg from 1967 to 1969, where he received the title of Diplom-Volkswirt in 1969. The topic of Schlicht's Diplomarbeit was "Die Einbeziehung des technischen Fortschritts in die Produktionstheorie" (''The inclusion of technical progress in production theory''). Two years later, he completed his doctorate, writing his thesis on "Eine neoklassische Theorie der Vermögensverteilung" (''A neo-classical theory of wealth distribution''). Academic career Schlicht has taught at the University of Bielefeld ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Steven Salop
Steven C. Salop (born December 23, 1946) is an American economist and academic whose work focuses on antitrust policy. He is a professor of economics and law at the Georgetown University Law Center. Salop is known for his scholarship on exclusionary practices and vertical mergers. Together with David Scheffman, he popularized the concept of raising rivals' costs as an antitrust violation. Education Salop earned his undergraduate degree at the University of Pennsylvania in 1968 and a Ph.D. in Economics from Yale University in 1972. Career Before joining the Georgetown Law faculty in 1981, he served as Associate Director for Special Projects with the Bureau of Economics of the Federal Trade Commission, as an adjunct professor of economics at the University of Pennsylvania. He was also an economist with the Civil Aeronautics Board and Federal Reserve Board. Salop teaches courses in Antitrust Law, Economic Reasoning and the Law, and has conducted a Faculty Workshop in Law an ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marginal Productivity
In economics and in particular neoclassical economics, the marginal product or marginal physical productivity of an input ( factor of production) is the change in output resulting from employing one more unit of a particular input (for instance, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs are kept constant. The marginal product of a given input can be expressed as: :MP = \frac where \Delta X is the change in the firm's use of the input (conventionally a one-unit change) and \Delta Y is the change in quantity of output produced (resulting from the change in the input). Note that the quantity Y of the "product" is typically defined ignoring external costs and benefits. If the output and the input are infinitely divisible, so the marginal "units" are infinitesimal, the marginal product is the mathematical derivative of the production function with respect to that input. Suppose a firm's output ''Y'' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Pareto Optimality
Pareto efficiency or Pareto optimality is a situation where no action or allocation is available that makes one individual better off without making another worse off. The concept is named after Vilfredo Pareto (1848–1923), Italian civil engineer and economist, who used the concept in his studies of economic efficiency and income distribution. The following three concepts are closely related: * Given an initial situation, a Pareto improvement is a new situation where some agents will gain, and no agents will lose. * A situation is called Pareto-dominated if there exists a possible Pareto improvement. * A situation is called Pareto-optimal or Pareto-efficient if no change could lead to improved satisfaction for some agent without some other agent losing or, equivalently, if there is no scope for further Pareto improvement. The Pareto front (also called Pareto frontier or Pareto set) is the set of all Pareto-efficient situations. Pareto originally used the word "optimal" for th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Involuntary Unemployment
Involuntary unemployment occurs when a person is unemployed despite being willing to work at the prevailing wage. It is distinguished from voluntary unemployment, where a person refuses to work because their reservation wage is higher than the prevailing wage. In an economy with involuntary unemployment, there is a surplus of labor at the current real wage. This occurs when there is some force that prevents the real wage rate from decreasing to the real wage rate that would equilibrate supply and demand (such as a minimum wage above the market-clearing wage). Structural unemployment is also involuntary. Economists have several theories explaining the possibility of involuntary unemployment including implicit contract theory, disequilibrium theory, staggered wage setting, and efficiency wages. The officially measured unemployment rate is the ratio of involuntary unemployment to the sum of involuntary unemployment and employment (the denominator of this ratio being the total ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Opportunity Cost
In microeconomic theory, the opportunity cost of a particular activity is the value or benefit given up by engaging in that activity, relative to engaging in an alternative activity. More effective it means if you chose one activity (for example, an investment) you are giving up the opportunity to do a different option. The optimal activity is the one that, net of its opportunity cost, provides the greater return compared to any other activities, net of their opportunity costs. For example, if you buy a car and use it exclusively to transport yourself, you cannot rent it out, whereas if you rent it out you cannot use it to transport yourself. If your cost of transporting yourself without the car is more than what you get for renting out the car, the optimal choice is to use the car yourself. In basic equation form, opportunity cost can be defined as: "Opportunity Cost = (returns on best Forgone Option) - (returns on Chosen Option)." The opportunity cost of mowing one’s own l ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
