Burda & Wyplosz Macroeconomics 3 rd edn OXFORD UNIVERSITY PRESS Портпарол Стејт...

Burda & Wyplosz Macroeconomics 3rd ednOXFORDUNIVERSITY PRESS

Портпарол Стејт департмента поднео оставку

Portparol Stejt Dipartmenta dao ostavku

Srpsla vlada uvodi jednoumlje


• Economic policy principles–1. small doses

–2. of the same measure

–Then people can addapt

– brings certainty


Labour market


What is the price of 1 hour of leasure

Equal to w

Robinson Crusoe


Available working hours


• l hours of leasure have a value

• ‚

)()( llwzaradićaillradića

Cllwzaradiillradi

)()(

Cllearnsillworks

))(


Ako se promeni realna zarada

leasure

Cllearnsillworks

))(

work

con

sum

pti

on


Rea

lna

nadn

ica

rad

Out

put

(Y)

rad

RA

= wslope

MPL

Figure 4.05


• What is maximal consumption

leasure

Cllearnsillworks

))(

work

con

sum

pti

on


Kada je dokolica l =0, onda je

lwC

It is here, were Crusoe works all the time


How does Crusoe react to a rise in real wage


Will he work more or less?


1870 1913 1938 1973 1992 2000

Annual hours worked per person

France 2,945 2,588 1,848 1,771 1,542 1,517Germany 2,941 2,584 2,316 1,804 1,563 1,469UK 2,984 2,624 2,267 1,688 1,491 1,491USA 2,964 2,605 2,062 1,717 1,589 1,660Sweden 2,945 2,588 2,204 1,571 1,515 1,588

Real wage (index: 1870 = 100)

France 100 205 335 1,048 1,417 1,434Germany 100 185 285 944 1,178 1,222UK 100 157 256 439 640 733USA 100 189 325 596 659 737Sweden 100 270 521 1,228 1,493 1,727

1870 1913 1938 1973 1992 2000

France 2,945 2,588 1,848 1,771 1,542 1,517Germany 2,941 2,584 2,316 1,804 1,563 1,469UK 2,984 2,624 2,267 1,688 1,491 1,491USA 2,964 2,605 2,062 1,717 1,589 1,660Sweden 2,945 2,588 2,204 1,571 1,515 1,588

Real wage (index: 1870 = 100)

France 100 205 335 1,048 1,417 1,434Germany 100 185 285 944 1,178 1,222UK 100 157 256 439 640 733USA 100 189 325 596 659 737Sweden 100 270 521 1,228 1,493 1,727

We observe income effect in the long run

Real watge 8-17xHours halved .


Technical progress and employment

Working age and unemployment


• Economics in 1 lesson


š

• Šta what is good for GM is good for America!

• We protect our agriculture


Examples of full employment without reaching potential output


• Concentration camps

• Tribal community


Individual labor supply in hours

Aggregate in men-hours


Supply demand


Interpretation of unemployment supply

demand

hours

Rea

l wag

e


ravnotežna realna zarada w je preniska da bi svi radnici odustali od dokolice: neki bi želeli da rade nepuno radno vreme, drugi opet ni toliko


Nevoljna nezaposlenost ipak postoji...• waGE RIGIDITY

supply

demand

hours

Rea

l wag

e


- TRADE UNIONS

- MINIMUM WAGES

- EFFICIENT WAGES


• COLLECTIVE LABOR SUPPLY


• WHY DO TRADE UNIONS INSIST ON WAGES WHILE UNEMPLOYMENT GROWS?


• Odgovor–Zaposleni traže rast (sopstvenih)

realnih zarada, po cenu rasta nezaposlenosti (ali ne sopstvene).

– oni su insajderi


• IT CANNOT GO TOO FAR–THEY COULD LOOSE JOBS

–COULD LOOSE MEMBERSHIP

–LOOSE POLITICAL POWER


STOPE NEZAPOSLENOSTI U RAZVIJENIM ZEMLJAMA London December 14, 2009, 21:33 IST

OECD unemployment rate for the area was 8.8 per cent in October,

0.1 percentage point higher than the previous month.

Japan saw an unemployment rate of 5.1 per cent in October.

US 10% in November 2009. In the previous month, the unemployment rate

had touched a 26-year-high of 10.2 per cent.


• http://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate


• Mean and medijan

• France, Belgium, HollAND miminmum wages prevail


Remember, 50% of high school seniors do not go to collegejanitor – domar ($13/hour)a delivery truck driver ($14/hour), a retail store assistant manager ($18/hour), automobile mechanic ($20/hour), fire fighter ($24/hour), a nurse ($25/hour), a department store buyer ($28/hour), an automobile salesman ($32/hour with commissions), and an IT project manager ($41/hour).What is the mean (average) wage of these 9? It is easy to calculate: add up the wages and divide by 9:13+14+18+20+24+25+28+32+41 = 215mean wage = 215 / 9 = $23.90/hourThe median is $24/hour. The fire fighter earns the middle wage: 1/2 are lower, and 1/2 are higher. For this particular sample, the mean and median give a similar answer for what a "typical" person on that team now earns.Now let's look at Stephon's hourly wage.


–Unemployment bennefits trap


• hysteresia


8.68.76.2+

---

6.15.44.6


1970=100

Figure 4.16 (a)

Euro-zone employment

Real wages in the Euro-zone

80

100

120

140

160

180

200

220

1970 1975 1980 1985 1990 1995 2000

Employment in USA

Real wages in USA

80

100

120

140

160

180

200

220

1970 1975 1980 1985 1990 1995 2000

• Zaposlenost u SAD

• plate u SAD

• plate u Evrozoni

Zaposlenost u Evrozoni


• Francuska

• Greece


• Social security network

•


Figure 4.14

LABOR MARKET MAP

Employed unemployed

Out of contingent

Found job

fired

Retreat to unemploym

discouragedretired

Change of job

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