Monopsony in motion Manning, Alan; Manning, Alan
2003., 20131203, 2013, 2003, 2003-01-01, 20030101
eBook
What happens if an employer cuts wages by one cent? Much of labor economics is built on the assumption that all the workers will quit immediately. Here, Alan Manning mounts a systematic challenge to ...the standard model of perfect competition.Monopsony in Motionstands apart by analyzing labor markets from the real-world perspective that employers have significant market (or monopsony) power over their workers. Arguing that this power derives from frictions in the labor market that make it time-consuming and costly for workers to change jobs, Manning re-examines much of labor economics based on this alternative and equally plausible assumption.
The book addresses the theoretical implications of monopsony and presents a wealth of empirical evidence. Our understanding of the distribution of wages, unemployment, and human capital can all be improved by recognizing that employers have some monopsony power over their workers. Also considered are policy issues including the minimum wage, equal pay legislation, and caps on working hours. In a monopsonistic labor market, concludes Manning, the "free" market can no longer be sustained as an ideal and labor economists need to be more open-minded in their evaluation of labor market policies.Monopsony in Motionwill represent for some a new fundamental text in the advanced study of labor economics, and for others, an invaluable alternative perspective that henceforth must be taken into account in any serious consideration of the subject.
Globalization is widely believed to have restricted the freedom of policy makers - many fear that the forces of a global economy prevent different political parties from making substantially ...distinctive policy choices. InPartisanship, Globalization, and Canadian Labour Market Policy, Rodney Haddow and Thomas Klassen explore this contentious issue by comparing labour market policy in Canada's most populous provinces, Ontario, Quebec, British Columbia, and Alberta, between 1990 and 2003.
Using the most up-to-date theoretical approaches available, Haddow and Klassen examine industrial relations, workers' compensation, occupational health, employment standards, training, and social assistance, measuring the impact of partisanship and globalization on policy-making in these areas. They situate Canada in relation to recent international scholarship on the comparative political economy of developed democracies, and explore the role that institutions play in conditioning labour market policy.
Partisanship, Globalization, and Canadian Labour Market Policywill not only be of interest to experts working in the field of labour market policy, but also to students and teachers of comparative political economy, partisanship, and governance in Canada.
We offer a unified analysis of the growth of low-skill service occupations between 1980 and 2005 and the concurrent polarization of US employment and wages. We hypothesize that polarization stems ...from the interaction between consumer preferences, which favor variety over specialization, and the falling cost of automating routine, codifiable job tasks. Applying a spatial equilibrium model, we corroborate four implications of this hypothesis. Local labor markets that specialized in routine tasL · differentially adopted information technology, reallocated low-skill labor into service occupations (employment polarization), experienced earnings growth at the tails of the distribution (wage polarization), and received inflows of skilled labor.
This paper explores the geographic overlap of trade and technology shocks across local labor markets in the United States. Regional exposure to technological change, as measured by specialization in ...routine task-intensive production and clerical occupations, is largely uncorrelated with regional exposure to trade competition from China. While the impacts of technology are dispersed throughout the United States, the impacts of trade tend to be more geographically concentrated, owing in part to the spatial agglomeration of labor-intensive manufacturing. Our findings highlight the feasibility of separately identifying the impacts of recent changes in trade and technology on US regional economies. PUBLICATION ABSTRACT
We analyze the effect of rising Chinese import competition between 1990 and 2007 on US local labor markets, exploiting cross-market variation in import exposure stemming from initial differences in ...industry specialization and instrumenting for US imports using changes in Chinese imports by other high-income countries. Rising imports cause higher unemployment, lower labor force participation, and reduced wages in local labor markets that house importcompeting manufacturing industries. In our main specification, import competition explains one-quarter of the contemporaneous aggregate decline in US manufacturing employment. Transfer benefits payments for unemployment, disability, retirement, and healthcare also rise sharply in more trade-exposed labor markets.
Precarious Asia Kalleberg, Arne L; Hewison, Kevin; Shin, Kwang-Yeong
12/2021
eBook
Precarious Asia assesses the role of global and
domestic factors in shaping precarious work and its outcomes in
Japan, South Korea, and Indonesia as they represent a range of
Asian political ...democracies and capitalist economies: Japan and
South Korea are now developed and mature economies, while Indonesia
remains a lower-middle income country.
With their established backgrounds in Asian studies, comparative
political economy, social stratification and inequality, and the
sociology of work, the authors yield compelling insights into the
extent and consequences of precarious work, examining the dynamics
underlying its rise. By linking macrostructural policies to both
the mesostructure of labor relations and the microstructure of
outcomes experienced by individual workers, they reveal the
interplay of forces that generate precarious work, and in doing so,
synthesize historical and institutional analyses with the political
economy of capitalism and class relations. This book reveals how
precarious work ultimately contributes to increasingly high levels
of inequality and condemns segments of the population to chronic
poverty and many more to livelihood and income vulnerability.
We study the evolution of trade liberalization's effects on Brazilian local labor markets. Regions facing larger tariff cuts experienced prolonged declines informal sector employment and earnings ...relative to other regions. The impact of tariff changes on regional earnings 20 years after liberalization was three times the effect after 10 years. These increasing effects on regional earnings are inconsistent with conventional spatial equilibrium models, which predict declining effects due to spatial arbitrage. We investigate potential mechanisms, finding empirical support for a mechanism involving imperfect interregional labor mobility and dynamics in labor demand, driven by slow capital adjustment and agglomeration economies. This mechanism gradually amplifies the effects of liberalization, explaining the slow adjustment path of regional earnings and quantitatively accounting for the magnitude of the long-run effects.
This paper estimates a structural dynamic equilibrium model of the Brazilian labor market in order to study trade-induced transitional dynamics. The model features a multi-sector economy with ...overlapping generations, heterogeneous workers, endogenous accumulation of sector-specific experience, and costly switching of sectors. The model's estimates yield median costs of mobility ranging from 1.4 to 2.7 times annual average wages, but a high dispersion of these costs across the population. In addition, sector-specific experience is imperfectly transferable across sectors, leading to additional barriers to mobility. Using the estimated model for counterfactual trade liberalization experiments, the main findings are: (1) there is a large labor market response following trade liberalization but the transition may take several years; (2) potential aggregate welfare gains are significantly reduced due to the delayed adjustment; (3) trade-induced welfare effects depend on initial sector of employment and on worker demographics such as age and education. The experiments also highlight the sensitivity of the transitional dynamics with respect to assumptions regarding the mobility of capital.
Outsourcing Economics has a double meaning. First, it is a book about the economics of outsourcing. Second, it examines the way that economists have understood globalization as a pure market ...phenomenon, and as a result have 'outsourced' the explanation of world economic forces to other disciplines. Markets are embedded in a set of institutions - labor, government, corporate, civil society, and household - that mold the power asymmetries that influence the distribution of the gains from globalization. In this book, William Milberg and Deborah Winkler propose an institutional theory of trade and development starting with the growth of global value chains - international networks of production that have restructured the global economy and its governance over the past twenty-five years. They find that offshoring leads to greater economic insecurity in industrialized countries that lack institutions supporting workers. They also find that offshoring allows firms to reduce domestic investment and focus on finance and short-run stock movements.
Who suffers during recessions? Hoynes, Hilary Williamson; Miller, Douglas Lee; Schaller, Jessamyn
The Journal of economic perspectives,
07/2012, Letnik:
26, Številka:
3
Journal Article
Recenzirano
Odprti dostop
In this paper, we examine how business cycles affect labor market outcomes in the United States. We conduct a detailed analysis of how cycles affect outcomes differentially across persons of ...differing age, education, race, and gender, and we compare the cyclical sensitivity during the Great Recession to that in the early 1980s recession. We present raw tabulations and estimate a state panel data model that leverages variation across U.S. states in the timing and severity of business cycles. We find that the impacts of the Great Recession are not uniform across demographic groups and have been felt most strongly for men, black and Hispanic workers, youth, and low-education workers. These dramatic differences in the cyclicality across demographic groups are remarkably stable across three decades of time and throughout recessionary periods and expansionary periods. For the 2007 recession, these differences are largely explained by differences in exposure to cycles across industry-occupation employment. PUBLICATION ABSTRACT
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