6 figure an increase in labor supply ryan w herzog gu

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Unformatted text preview: 5, 2014 19 / 40 Explaining Trends in the Labor Market Why have real wages increased? (Figure 5.7) Over the last 100 years the labor force has increased dramatically, but the gains from technology and trade are superior. Figure : Why have real wages increased? Ryan W. Herzog (GU) Labor Market February 5, 2014 20 / 40 Explaining Trends in the Labor Market Real Wages and Productivity (Figure 5.8) Figure : The Relationship Between Real Wages and Productivity Ryan W. Herzog (GU) Labor Market February 5, 2014 21 / 40 Explaining Trends in the Labor Market Productivity and Wages (Table 5.4) Table : Productivity and Real Earnings by Decade Years 1960-1970 1970-1980 1980-1990 1990-2000 2000-2007 Ryan W. Herzog (GU) Productivity 2.74 1.71 1.60 2.04 2.49 Labor Market Real Earnings 2.27 1.23 0.71 1.50 1.27 February 5, 2014 22 / 40 Explaining Trends in the Labor Market Why has real wage growth slowed? (Figure 5.9) The main factors contributing to a slow down in real wages are woman and baby-boomer generation. Together they have also contributed to large increases in employment. Figure : A slow down in real wages Ryan W. Herzog (GU) Labor Market February 5, 2014 23 / 40 Explaining Trends in the Labor Market An Increase in Inequality (Figure 5.10) An increase in globalization has increased the demand for high skilled workers and decreased the demand for low skilled workers. Figure : An increase in inequality - Globalization and Technology Ryan W. Herzog (GU) Labor Market February 5, 2014 24 / 40 Explaining Trends in the Labor Market Education and Real Wages (Figure 5.11) Figure : Education and Wages Ryan W. Herzog (GU) Labor Market February 5, 2014 25 / 40 Explaining Trends in the Labor Market High Unemployment Rates in Europe? (Figure 5.12) Structural rigidities in the labor market will result in wages set above equilibrium and high levels of unemployment. Figure : High Unemployment Rates in Europe Ryan W. Herzog (GU) Labor Market February 5, 2014 26 / 40 Explaining Trends in the L...
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