A distinguishing feature of labor services is that they are immediately perishable. This paper explores the implications of immediate perishability for the market for homogenous labor services that are sold in a centralized exchange. The analysis sheds light on the nature of unemployment. The paper also explores implications for the role of labor cartels and firms in providing workers an altern...

Preliminary and incomplete: Please do not quote or cite without permission of the authors. 1 Two recent papers highlight the growing focus on wage and employment dynamics. Bergin et al. (forthcoming) describe the importance of understanding the sources and consequences of labor market volatility. Couch and Placzek (forthcoming) represents renewed interest in understanding one particular consequ...

As China passes through its Lewis turning point characterized first by the appearance of a labor shortage and a constant increase in wages, its labor market shows both features of the dual economy and neoclassical growth. This paper first depicts the trend of population as a root cause of the labor market transition from dual economy to neoclassical scenario. It then reveals the changed labor m...

This paper estimates the macroeconomic effect of labor market programs on labor force participation. Labor market programs could counteract business-cycle variation in the participation rate that is due to the discouraged-worker effect, and they could prevent labor force outflow. An equation that determines the participation rate is estimated with GMM, using panel data (1986-1998) for Sweden’s ...

Trade and Labor Reallocation with Heterogeneous Enforcement of Labor Regulations This paper revisits the question of how trade openness affects labor market outcomes in a developing country setting. We explore the fact that plants face varying degrees of exposure to global markets and to the enforcement of labor market regulations, and rely on Brazil’s currency crisis in 1999 as an exogenous so...

This paper is an effort to explain, in part, an empirical paradox in the U. S. labor market. Many types of behavior in this market, notably layoff and real wage behavior, have proved inexplicable if the labor market is modeled as a sequence of spot auction markets. However, if we treat trade in this market as being mediated via long-term contracts, we gain a great deal of explanatory power. A p...

T his study investigated the effect of international labor migration on Iran’s economy using a neo-classical growth model with the assumption of labor heterogeneity within the framework of dynamic stochastic general equilibrium model. After solving the model, the obtained equations were linearized and different values were assigned to the parameters according to Iran’s economy inform...

The paper builds on the baseline Goodwin (1967) model which describes the reserve army mechanism of capitalist economies. We add to this model segmented labor markets as described in Marx’s Capital, Vol.I. The model exhibits a unique steady state solution which depends on the speeds with which workers are pushed into or out of the labor market segments. We investigate the stability properties o...

All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission, provided that full credit including © notice is given to the source. Abstract Scholars interested in race inequality have been particularly attracted to network accounts of the stratifying effects of social networks in the labor market. A recurring theme in policy‐oriented resea...