Consumerism, Sex, Advertising, and Human Nature: A Talk With Evolutionary Psychologist Gad Saad
17 Apr 2018 Leave a comment
in applied price theory, economics of information, economics of media and culture Tags: preference formation
Jonathan Chait is spot on. Left believes they lose because the system is rigged and voters are duped. It is never that their ideas just don’t fly.
09 Apr 2018 Leave a comment
in constitutional political economy, income redistribution, politics - USA, Public Choice, rentseeking Tags: free speech, media bias, preference falsification, preference formation, regressive left
Gary Becker (1991) on the power of culture and traditional women’s roles
08 May 2017 Leave a comment
in development economics, discrimination, economic history, Gary Becker, gender, human capital, labour economics, labour supply Tags: economics of culture, economics of tradition, gender wage gap, preference formation
Source: The Adam Smith address: Education, labor force quality, and the economy. By: Becker, Gary S., Business Economics, Jan1992, Vol. 27, Issue 1
Why is the Swedish gender wage gap so stubbornly stable (and high)?
06 May 2017 Leave a comment
in discrimination, gender, human capital, labour economics, labour supply, occupational choice Tags: economics of fertility, female labour force participation, gender wage gap, maternity leave, preference formation, statistical discrimination, Sweden, unintended consequences
The Swedes are supposed to be in a left-wing utopia. Welfare state, ample childcare and long maternity leave but their gender wage gap is almost as bad as in 1980. They must be a misogynist throwback.
Maybe Megan McArdle can explain:
There are countries where more women work than they do here, because of all the mandated leave policies and subsidized childcare — but the U.S. puts more women into management than a place like Sweden, where women work mostly for the government, while the private sector is majority-male.
A Scandinavian acquaintance describes the Nordic policy as paying women to leave the home so they can take care of other peoples’ aged parents and children. This description is not entirely fair, but it’s not entirely unfair, either; a lot of the government jobs involve coordinating social services that women used to provide as homemakers.
The Swedes pay women not to pursue careers. The subsidies from government from mixing motherhood and work are high. Albrecht et al., (2003) hypothesized that the generous parental leave a major in the glass ceiling in Sweden based on statistical discrimination:
Employers understand that the Swedish parental leave system gives women a strong incentive to participate in the labour force but also encourages them to take long periods of parental leave and to be less flexible with respect to hours once they return to work. Extended absence and lack of flexibility are particularly costly for employers when employees hold top jobs. Employers therefore place relatively few women in fast-track career positions.
Women, even those who would otherwise be strongly career-oriented, understand that their promotion possibilities are limited by employer beliefs and respond rationally by opting for more family-friendly career paths and by fully utilizing their parental leave benefits. The equilibrium is thus one of self-confirming beliefs.
Women may “choose” family-friendly jobs, but choice reflects both preferences and constraints. Our argument is that what is different about Sweden (and the other Scandinavian countries) is the constraints that women face and that these constraints – in the form of employer expectations – are driven in part by the generosity of the parental leave system
Most countries have less generous family subsidies so Claudia Goldin’s usual explanation applies to their falling gender wage gaps
Quite simply the gap exists because hours of work in many occupations are worth more when given at particular moments and when the hours are more continuous. That is, in many occupations earnings have a nonlinear relationship with respect to hours. A flexible schedule comes at a high price, particularly in the corporate, finance and legal worlds.
Unconscious bias and the gender wage gap
30 Nov 2015 Leave a comment
in applied price theory, discrimination, gender, labour economics, managerial economics, occupational choice, organisational economics, personnel economics Tags: gender wage gap, preference formation, unconscious bias
Margaret Thatcher on the concept of a false consciousness
21 Nov 2015 Leave a comment
in liberalism, Marxist economics Tags: all of communism, capitalism and freedom, class consciousness, false consciousness, Margaret Thatcher, preference formation, rational ignorance, rational irrationality
Labour Party misunderstands why a Tory MP tried to join to vote @jeremycorbyn
06 Aug 2015 Leave a comment
in constitutional political economy, Marxist economics, Public Choice, rentseeking Tags: British Labour Party, British politics, expressive voting, Leftover Left, preference formation, rational irrationality, shy Labour voters, working class Torys
Zero hours contracts prevalence, the class struggle and the gales of creative destruction
26 Feb 2015 1 Comment
in labour economics, labour supply, managerial economics, occupational choice, organisational economics, personnel economics Tags: class struggle, Class war, creative destruction, false consciousness, inherent inequality of bargaining power between workers and employers, job satisfaction, preference formation, work life balance, zero hours contracts
Source: Use of zero hours contracts rises to record levels | City A.M.
The number of workers on zero hours contracts has certainly exploded in the UK, going from about 100,000 to 700,000 in about five years. The UK data also suggests that most of these contracts will be in the accommodation and food services sector.
Source: Use of zero hours contracts rises to record levels | City A.M.
Zero hours contracts is creative destruction at work in the labour market, sweeping away obsolete working time arrangements, mostly in the retail services sector.
Zero hours contracts is creative destruction at work in the labour market, sweeping away obsolete working arrangements mostly in the retail services sector.
New Zealand data is hard to come by on zero hours contracts. Data on working hours arrangements is in the Survey of Working Life which is conducted every couple of years. This survey doesn’t give any data directly on the prevalence of zero hours contracts, but it does tell you how many people are temporary employees and among these, who is a casual and seasonal employee and whether they have regular hours.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
The first thing can be said about the prevalence of zero hours contracts in New Zealand is two years ago the number of workers both male and female who were casual, fixed term and temp agency workers was relatively small. Less than one in 20 male workers was a casual worker; 3% of male workers was on a fixed term or temp agency worker. For women, 6% were casual workers and 4.9% were either fixed term or temp agency workers.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
Temporary employment is most common In the agriculture, forestry and fishery sectors, which is no surprise because of the prevalence seasonal workers in that sector.The retail trade accommodation and food sectors is not the next cab off the rank for temporary employment. Temporary employment is rather common in the education and professional science sectors.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
In the retail trade commendation and food services worker, 90% of all employees are still permanent. There are about 32,000 workers in the retail trade, accommodation and food services sectors.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
Among all casual employees across all sectors, 50% work standard hours and about 10% have no usual working time. That is, out of the 92,000 casual employees in New Zealand, about 9000 of them have no usual working times, which is the equivalent of a zero hours contract. No data was published by Statistics New Zealand on fixed term and temp agency workers because the sample sizes were too small so the data was suppressed confidentiality reasons.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
For casual, fixed term and temp agency employees, it is commonplace for them to change their hours from week to week to suit the needs of their employees. The equivalent of zero hours contracts Is commonplace among employees who do not have permanent employment status. It goes with the territory. Those who want fixed hours seek permanent employment.
For zero hours employment to become common, this form of contract in over working time arrangements will have to be come more common among permanent employees. If that is so, such a trend will make the notion of a permanent employee somewhat vague considering these employees, although permanent, are not guaranteed regular hours.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
They are a happy lot are temporary employees. Pretty much enjoy their jobs as much as permanent employees do when it comes to their job and, by implication, that perennial left-wing bugbear, the inherent inequality of bargaining power between the bosses and the workers and the violence inherent in the capitalist system. All is not well for the class war.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
What is worse for the future of the class struggle is that these temporary employees are rather happy lot when it comes to work life balance. Just as happy as permanent employees. Indeed, temporary or permanent employment status has no effect on job satisfaction and work life balance.
Source: Survey of Working Life December Quarter 2012, Statistics New Zealand.
Rise up ye workers, rise up for you have nothing to lose but your zero hours contracts may have to be put on hold as the next battle cry of the class war in New Zealand. Indeed, a lot of consciousness-raising will be in store for our friends on the Left because the working class seem a rather happy lot in their jobs, slightly less grumpy than the middle class, and almost as happy as the ruling class.
Kicking in the rotted door of capitalism to bring on the permanent revolution has never been easy. Zero hours contracts just does not seem to be the new straw that will break the capitalists’ back any time soon. Workers seem to be rather happy with them or their equivalent that has been around for a long time in the labour market.
Critics overplay their hand if they suggest that somehow workers a very much disadvantaged and employers are holding all the cards. Job turnover and recruitment problems are a serious cost to a business. Workers will not sign contracts, such as zero hours contracts or casual work contracts if they are not to their advantage.
Utopia, you are standing in it! 
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