Abstract
A two-argument function of individual labor supply is considered. Real wage and unemployment rates are the arguments of this function. Conditions of emergence of direct and inverse relations between these two economic indicators are investigated. This function is used to analyze processes in a competitive and monopsonic labor market. The expediency and conditions are substantiated for the use of the exogenous increase in labor remuneration by increasing minimal wage.
Similar content being viewed by others
Explore related subjects
Discover the latest articles, news and stories from top researchers in related subjects.References
M. Belton, Th. Fleisher, and L. Kneisner, Labor Economics: Theory, Evidence, and Policy, Prentice Hall, N.Y. (1984).
D. G. Blanchflower and A. J. Oswald, “The wage curve,” Scandinav. J. of Econom., 92, 215–235 (1990).
D. G. Blanchflower, “Unemployment, well-being, and wage curves in Eastern and Central Europe,” J. of the Japanese and Intern. Econom., 15, 364–402 (2001).
V. M. Montuega-Gomez and J. M. Ramos-Parreno, “Reconciling the wage curve and the Phillips curve,” J. of Econom. Surveys, 19, 735–736 (2005).
D. G. Blanchflower and A. J. Oswald, “Estimating a wage curve for Britain,” Econom. J., 104, 1025–1043 (1994).
G. Chamberlin and L. Yueh, Macroeconomics, Thomson Learning, N.Y. (2006).
C. Shapiro and J. E. Stiglitz, “Equilibrium unemployment as a worker discipline device,” American Econom. Rev., 73, 433–444 (1984).
L. B. Koshlai, M. V. Mikhalevich, and I. V. Sergienko, “Simulation of employment and growth processes in a transitive economy,” Cybernetics and Systems Analysis, No. 3, 392–406 (1999).
M. Resnicoff, European Union Minimum Monthly Salaries (2008), http://www.suite101.com.
V. G. Karmanov, Mathematical Programming [in Russian], Nauka, Moscow (1980).
Author information
Authors and Affiliations
Corresponding author
Additional information
Translated from Kibernetika i Sistemnyi Analiz, No. 5, pp. 18–30, September–October 2010.
Rights and permissions
About this article
Cite this article
Mikhalevich, M.V., Koshlai, L.B. Labor market modeling using a labor supply function of two-arguments. Cybern Syst Anal 46, 699–709 (2010). https://doi.org/10.1007/s10559-010-9250-x
Received:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10559-010-9250-x