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The States Of Labor Supply And Demand: A Theoretical And Empirical Analysis Basing On A Downward-sloping Labor Supply Curve

Posted on:2006-10-18Degree:DoctorType:Dissertation
Country:ChinaCandidate:J Q GuoFull Text:PDF
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Basing on the fact that there existing minimum necessity expenditure constraint in the laborers which the mainstream economics has not paid enough attention to, this paper develops the labor supply curve describing by the canonical labor supply model, and combines it with the labor demand curve for a further research of the possible wage and employment status. The author introduces the minimum necessity expenditure constraint into the canonical labor supply model, and considers that the canonical labor supply curve will have a inflexion i.e. a turn point, and the labor supply curve after the inflexion will slope downward i.e. fall forward; on the other side, to the segment of the labor supply curve after inflexion, when there is an insufficiency of labor demand, the labor supply and demand will disperse downward through to the "reservation wage trap". The purpose that this paper analyzes the problem having not brought up the attentions of the mainstream economics, is to construct a general theory framework of labor and employment under the constraint of minimum necessity expenditure, and explains the following phenomena and theories:1. The labor supply of the rural laborers in the secondary labor market in the cities of China. Nowadays, there is such a phenomenon in the secondary labor market in the cities of China: the labor supply of the rural laborers and their wages are positive feedback downwards until to the reservation wage rate. The author explains this phenomenon in the theory framework of this paper, and on this condition, the empirical analysis of the labor supply of the rural laborers in the secondary labor market in the cities of China confined to this conclusion; at the same time, the analysis about the minimum necessity expenditure in the paper, inaugurates a new theory and policy space for improving the plight of the laborers.2. The unemployment problem under wage flexibility. The mainstream economics usually attributes the unemployment problem to the wage lacks flexibility, and has not give enough attention to the unemployment under wage flexibility. About this thesis, according as the four combination states of the labor supply and labor demand that may exist in the real world, we stress this unemployment under the demand being insufficient to the supply, and call it as "expenditure-constraint-causing unemployment". The author considers that this unemployment will also appear even if the wage is flexible, and it is a new type of unemployment that the mainstream economics has not explored. This type of unemployment has a definite universality in those countries at the beginning or medium stage of industrialization; and on the other side, the analysis in a way also can generalize the Lewis' model of unlimited supplies of labor.3. To unscramble Marx's wage and unemployment theory in modern economics. Marx had post such a prospect at the aspect of wage and unemployment: the laborer's wage tends to its minimum bound (the minimum bound of labor value); because of the effect of the capitalism accumulating rule and relative overpopulation rule,...
Keywords/Search Tags:minimum necessity expenditure, labor supply inflexion, reservation wage trap, wage flexibility, expenditure-constraint-causing unemployment
PDF Full Text Request
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