Search results
Results from the WOW.Com Content Network
The labor force participation rate of the wife rises with the expectation that her husband will be unemployed permanently due to aging or other factors (Maloney, p. 183). Women who expect their husbands will be unemployed for the long-run are more likely to accept a job when they have the opportunity, but without the intention of dropping out ...
Okun's law is an empirical relationship. In Okun's original statement of his law, a 2% increase in output corresponds to a 1% decline in the rate of cyclical unemployment; a 0.5% increase in labor force participation; a 0.5% increase in hours worked per employee; and a 1% increase in output per hours worked (labor productivity).
If the substitution effect is stronger than the income effect then the labour supply slopes upward. If, beyond a certain wage rate, the income effect is stronger than the substitution effect, then the labour supply curve bends backward. Individual labor supply curves can be aggregated to derive the total labour supply of an economy. [1]
The growth accounting procedure proceeds as follows. First is calculated the growth rates for the output and the inputs by dividing the Period 2 numbers with the Period 1 numbers. Then the weights of inputs are computed as input shares of the total input (Period 1). Weighted growth rates (WG) are obtained by weighting growth rates with the weights.
Due to the equation (4), the Smith-Marx theory of labor value is supplemented by the law of substitution, which states that in the production of value, the work of external forces of nature through production equipment replaces the efforts of people; human efforts and the substitute work of external energy sources are the true and only sources ...
In equation , the roles of gW T and gP ex seem to be redundant, playing much the same role. However, assuming that λ is equal to unity, it can be seen that they are not. If the trend rate of growth of money wages equals zero, then the case where U equals U* implies that gW equals expected inflation. That is, expected real wages are constant.
The average product of labor (APL) is the total product of labor divided by the number of units of labor employed, or Q/L. [2] The average product of labor is a common measure of labor productivity. [4] [5] The AP L curve is shaped like an inverted “u”. At low production levels the AP L tends to increase as additional labor is added.
Economic activity rate, EAR (or labor force participation rate, LFPR), is the percentage of the population, both employed and unemployed, [1] that constitutes the workforce, regardless of whether they are currently employed or job searching.