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by: Miss Adeline Weimann


Miss Adeline Weimann
GPA 3.57


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Class Notes
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This 14 page Class Notes was uploaded by Miss Adeline Weimann on Wednesday September 9, 2015. The Class Notes belongs to ECON 491 at University of Washington taught by Staff in Fall. Since its upload, it has received 10 views. For similar materials see /class/192487/econ-491-university-of-washington in Economcs at University of Washington.




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Date Created: 09/09/15
Other Labour Market issues Econ 491 Other Labour Market Issues Econ 491 Department of Economics University of Washington 23 October Autumn 2007 Other Labour Market issues Econ 491 Cinnamon hmw n Hairli a 99 Economic Framework Outline Permanent Labour Nonmonitored Tasks Casual Tasks 9 Empirical Evidence Correlations between Health and Wages Economic Framework thfr L abour ar et Ssues Introduction Econ 491 Permanent Tasks o Difficult to monitor 0 Casual tasks Why study 0 Welfare of labourers 0 Development indicator Other Labour Market issues TradeOffs Econ 491 Nunmunnnrei Tasks ltks Production technology 0 Permanent 0 Casual 0 Figure 1313 0 ti inversely related to 5 0 Does not show how wages are determined Olher Labour Markel issues Emu Shirk or not Determining Wage Find wage to ensure that permanent labour performs the nonmonitorable tasks 0 Time horizon N o Shirking detected Fired o If fired Only casual labour 0 Gain from shirking G 0 Loss gain G MW 7 We Wage rate 2 N 1 wp wp Other Labour Marketlssues Econ 491 Nunmunnnrei Tasks Texks 0 Combine technology and equation 0 Figure 1314 Z total labour 0 Identical workers differential treatment 0 Premium W gt We Question Is it possible to bid down Wp Other Labour Market tssues Ema Casual Task and Permanent Labour Seasons o Slack wage low 0 Peak wage high Uncertainty 0 Weather 0 Other factors 0 Labour demand unknown Other Labour Market issues Econ 491 Smoothing Consumption Labourer Prefers to smooth consumption over seasons Model 0 Riskneutral employer 0 Hires in both slack and peak 0 Contract Constant wage Questions 0 Size of wage 0 Have to work in both periods 0 Why not everybody Other Labour Market Issues Econ 491 1 Nonmonnorm Task oas11a1 Tasks oone1a11ons berween Heaun and Wages 0011011110 Pram 91110111 Height cm Changes in Height Males E UNITED STATES C 170 01 D1 Ul h 169 FPmalPs Males 167 7 166 159 1 1 1 1920 1930 1940 quotVIETNAM quot153 quot57 163A 7152 162 156 1617 151 i 316039 3915 7135 E g 15939 39149 w 154 k 153 143 157 147 gt153 155 v 146 145 1 1 1 1 1 1910 1920 1930 1940 1950 Birth year 155 i 1 1 1 1 1 1 1920 1930 1940 1950 1990 1970 Females Females nght cm Other Labour Market Issues Econ 491 1 Correiaiions between Heaiih and Wages Eporu ms Framework wage if no education In Height Education and Wages A United States lt 7 125 4225 m E 1 J 2 g E E 75 175 2 Tan 5 r 15 E 5 251 13111211 13925 7 1 1 160 170 180 190 1 Brazil I39 15 Smue education I I i 1 quot r 125 5 7 1 25 i 75 0 N0 educatinn I 1 1 1 160 170 180 190 Height cm In wage if some education Years of education Years of education B1 14 United States Age 2534 3 u G 1 1 T 160 170 180 190 2 8 Brazi 6 Ago 2534 4 gt v x 27 xv3 Age 5364 0 I 1 1 I 150 160 1 0 180 Height EMS Flgu r2 2 Wages Education and Height of Males in Brazil and the United States Other Labour Market Issues Econ 491 w Ho mommred Tasks Casua Tasks Corre a ons berween Heah an Eco omm Framework Current BMI and Wages A 1257 225 2 an 1 United States 2 g E g A I3 go 75 175 5 5 ED 5 5 quot 15 E f 5 25 Brazil 125 I v I 1 1 I I I 18 20 22 24 25 28 303234 BMI W 5 Em 77777777 15 39 75 Some education 239 g a 125 E o 5 i 3 A 1 30 7 K 8 25 x 2 395 N0 education 3975 E T T T I f T 18 20 22 24 2e 28 so 32 34 BMIkgmz Figure 3 Wages and BMI in Brazil and the United States Other Labour Market Issues Econ 491 Lli Norimmriiioied Tasks Casuei Tasks Correiaiions beiween Heaiih and Wages ECOHN iiir Fiamework Labour Force Participation and not working not working a v a q m 7 Health x Height a m I H on Figure 4 185 BM Height cm 20 22 24 26 25 30 BM kgmz Height BMI and Percent Not Working Males in Urban Brazil Other Labour Market issues Emu Intrahousehold Allocation When is unequal distribution optimal 0 Minimum health treshold for work 0 Extremely poor household 0 Not everybody can consume enough to be productive Who is most likely to suffer 0 Young children 0 Pregnant and lactating women 0 Older people Other Labour Market issues Econ 491 Preferences or Return Two competing explanations 0 Return to investment 0 Bargaining power and preferences Example Rosenzweig and Schultz 1982 finds that in areas of India with higher wages for women girls are in better health Discussion How can we explain this result


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