【北京大学-光华管理学院-经济学】Lecture 13-Distribution of Income-王老师.pdf

Chapter 13 17 Distribution of Income Hui Wang, Dept. of Applied Economics, GSM, Peking University. OutlineOutline 1. Wage income determinants 1. General wagge level 2. Demand for labor 33. LaborLabor supplysupply 4. Labor Market Equilibrium 2. Source of wage differentials 33. MeasureMeasure ofof inequalityinequality (Ch(Ch. 1717 A)A) 4. Public policies (Ch. 17 B p330-332) 11.11 TheThe GeneralGeneral WageWage LevelLevel • Real wage represents the purchasing power  of an hour’s work – Measure of labor earning – ItIt’ss thethe earningearning measuredmeasured byby unitsunits ofof certaincertain  goods – RReall wage = nomiinall wage// priice off ththe goodds Hui Wang, Dept. of Applied Economics, GSM, Peking University. 1.2 Demand for Labor • Marginal Productivity Difference – RRecallll iin ChChaptter 1212, optitimall llabbor  input is determined by  MPL/wage=1/MR=1/P OR: MPL=wage/P=real wage – Demand for a factor of production  reflectsreflects thethe marginalmarginal productivityproductivity ofof  that input • Factors affecting the labor demand  (productivity) – CapitalCapital stockstock – Technology  – Quality of labor (human‐capital:  literacy, education, training) Hui Wang, Dept. of Applied Economics, GSM, Peking University. 11.33 LaborLabor SupplySupply • LLabbor supplly reffers to thhe  number of hours that the  populationpopulation desiresdesires toto workwork inin  gainful activities • Labor Supply Curve might be  backward bending • Factors affectingg labor supppplyy 1.