The European Tribune is a forum for thoughtful dialogue of European and international issues. You are invited to post comments and your own articles.
Please REGISTER to post.
But your labor demand curve has the wrong shape for low-wage labor in high-income Anglo Disease nations.
I'm having a hard time visualizing this, can draw a picture for me? And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
The result when labor supply intersects within the zone of nil or negligible wage-elasticity of demand for labor is a bargaining range scenario, where there is no technical determinant of position within the wage and relative bargaining power is expected to determine position within the range.
Not all labor markets will be within the bargaining range for the same overall labor market conditions and same minimum wage ... and of course, this does not apply to a full employment economy (and hence does not apply within the standard economic modeling, which assumes from the outset a long-run tendency to full employment), but the empirical results tend to suggest that observed gross elasticity is nil or negligible, so if the partial elasticity is negative, it is offset by a positive income effect. I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by Frank Schnittger - Jan 26 3 comments
by Frank Schnittger - Jan 22 3 comments
by Cat - Jan 25 25 comments
by Oui - Jan 9 21 comments
by Frank Schnittger - Jan 13 28 comments
by gmoke - Jan 20
by Oui - Jan 15 90 comments
by gmoke - Jan 7 13 comments
by gmoke - Jan 29
by Oui - Jan 2729 comments
by Frank Schnittger - Jan 263 comments
by Cat - Jan 2525 comments
by Frank Schnittger - Jan 223 comments
by Oui - Jan 2110 comments
by Oui - Jan 21
by Oui - Jan 20
by Oui - Jan 1839 comments
by Oui - Jan 1590 comments
by Oui - Jan 144 comments
by Frank Schnittger - Jan 1328 comments
by Oui - Jan 1219 comments
by Oui - Jan 1120 comments
by Oui - Jan 1031 comments
by Oui - Jan 921 comments
by NBBooks - Jan 810 comments
by Oui - Jan 717 comments
by gmoke - Jan 713 comments