Real Wage Gap Research Articles

Dynamic Effects of U.S. Budget Deficit and Labor Productivity - Real Wage Gap On Stock Market Performance

This paper investigates the dynamic effects of annual U.S budget deficit as aratio of GDP and labor productivity-real wage gap on US stock market performance.The sample period runs from 1950 through 2012. The standard cointegration methodologyis appropriately applied. All the aforementioned variables are nonstationaryin levels revealing I(1) behavior. The coefficient of the error-correction term of thevector error-correction model (VECM) has expected negative sign with statisticalsignificance confirming long-run unidirectional causality stemming from the independentvariables to the stock market return. However, the speed of adjustment towardsa long-run equilibrium is slow as reflected in the low numerical coefficientof the error-correction term. The evidences on short-run interactive feedback effectsare also very weak.

Nonfarm Employment Information for Rural People

The objectives of this study embrace somewhat more than those of pure allocative efficiency. A primary objective is to examine possibilities of creating better opportunities for rural people to obtain a higher level of living through farm and nonfarm work and thus to share more fully in the fruits of economic progress. But real opportunities are those which migrants, who create possibilities for resource recombination on farms, are able to accept in full knowledge of their ultimate total consequences. Misrepresentation and coercion as means of reallocating rural labor are ruled out by assumption. In terms of economic concepts, the objective of supplying more perfect employment information is to bring the supply curves of rural labor in farm and nonfarm uses into closer correspondence, to narrow the real wage gap between urban and farm alternatives.'