A Relationship Between the Factor Indivisibility and the Output Elasticity of the Indivisible Factor

Das, Dipankar

doi:10.1177/2321022220985160

Cited by 4 publications

(8 citation statements)

References 25 publications

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“…There are three important elements, namely, (1) normal wages, (2) interest and (3) rent of ability. This has been proved by Das (2021) assuming that labor is an indivisible factor. This wage function acts as a decision function after that the labor selects more leisure than labor hours.…”

Section: Choice Between Labor and Leisure And The Wage Equationmentioning

confidence: 93%

“…These three components of a wage equation can only be derived by considering labor as an indivisible input, i.e. l∈double-struckZ+ (Das, 2021). Two theorems have been derived in the previous paper, first, for a convex production function and the consideration of indivisibility of labor gives a true measure of productivity and that can decompose the marginal value of labor into three important parts: (1) normal wages; (2) interest; and (3) rent of ability.…”

Section: Choice Between Labor and Leisure And The Wage Equationmentioning

confidence: 99%

“…w 1 ≤ w 2 ≤ w 3 . These wage rates must follow the equation as derived by Das (2021). The policy institute wants to achieve the equilibrium at a possible lower wage rate, but at a higher labor hour, on the other hand, labor prefers just the opposite.…”

Section: The Choice Process and The Ex-post Data Interpretationsmentioning

confidence: 99%

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Managing the job guarantee public policy schemes: a strategic approach

Das

2022

JES

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PurposeTo run a job guarantee public policy scheme, it is important to know the aspiration level or the reference point of labor, and accordingly, the labor hour and the wage sequence are to be prepared. The existing job guarantee schemes consider the same wage rates for all types of jobs. As a result, it is to identify the reference point. The present work aims to propose a job guarantee scheme where different types of jobs have different wage rates. The paper explains the choice problem between labor and leisure at different wage rates and proposes complete computational tools to be incorporated into the job guarantee schemes. The paper also gives a mechanism to prepare the list of jobs and corresponding wage rates by maintaining a balance between labor and leisure, where productive activities measure labor hours and labor welfare measures leisure hours. Lastly, the paper provides the analytical tools to interpret the ex-post data of the job guarantee public policy schemes.Design/methodology/approachThe paper has been written based on the Coordination Game and its Welfare Implications in the job guarantee public policy schemes.FindingsThe present paper gives an initial work to measure the choice between labor and leisure for the different wage rates practically. This will help in getting the equilibrium strategies, namely, the combination of the labor hour and the wage rate between the policymaker and the labor. This method will help to implement the job guarantee schemes. For example, to run successfully the Basic Income policy, the basic income calculation should give due care; otherwise, there will be a downward trend in the basic income and the welfare of labor will be reduced, because the labor would have to supply excess labor to meet the target income.Originality/valueThis paper derives theories and explains how the equilibrium in this coordination game can be achieved. The paper explains how the policy of the job guarantee schemes can be practiced practically. In the MGNREGA scheme, the public institution declares different categories of jobs with different wage rates. The categories have been classified with respect to the hours required to complete the job. Therefore, the public institution declares different lists or a sequence of pairs of labor hours and wage rates. Moreover, the list is stochastic, because the list can be changed by the inclusion of an offer from the market as well. The labor has to select from the list. The challenge on the part of the public institution is to prepare the list in such a way so that the inclusion of the market offers will not distort the equilibrium of the coordination game. An important method has been proposed here to analyze the ex-post data of job offers so that the preparation of the future sequence of the job offers can be prepared with due care. One objective of the policymaker here is to make a list of job offers in such a way so that the labor supply will be converging to a point and that will not deviate if the wage rate increases further. This objective will make a balance of the distribution of funds between the existing registered labor and the new entrants into the job guarantee schemes.

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Section: Choice Between Labor and Leisure And The Wage Equationmentioning

confidence: 93%

Section: Choice Between Labor and Leisure And The Wage Equationmentioning

confidence: 99%

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Managing the job guarantee public policy schemes: a strategic approach

Das

2022

JES

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“…Therefore, there exists a convex relationship between wages and social skills. Because socially skilled labor increases productivity for both individual labor and the team, wages would increase more than once, that is, multiple effects are there (Das, 2021). Deming (2017), using a production function of cognitive skill and social skill, shows that they are complements.…”

Section: Human Ability and Artificial Intelligencementioning

confidence: 99%

“…Now to measure the hourly productivity of labor, one must consider the variable part of the output, the incremental part of the output and the labor hour. Moreover, an indivisible labor should get three important entitlements: (1) normal wage, (2) incremental benefits and (3) rent for ability (Das, 2021). The productivity of a fraction of labor hour is important here, which includes both how much is from the past accumulation and how much is from the present.…”

Section: Human Ability and Artificial Intelligencementioning

confidence: 99%

Understanding the choice of human resource and the artificial intelligence: “strategic behavior” and the existence of industry equilibrium

Das

2022

JES

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PurposeArtificial intelligence (AI) has become an input to the production of goods and services. Therefore, a general question is there that “How the labor hour/human resource will be replaced by the artificial intelligence?” To answer this question, the paper considers that both AI and the human resources (HR) are the inputs to the firm and explains the choice between the two with reference to the customer relationship management. The paper derives the individual firms and the industry demand functions of the AI and the HR when both are present in the production of the identical or closely related goods and services. Moreover, the paper also shows the strategic behavior of an individual firm with the industry in selecting the AI and the HR. It has been shown that the individual firm's choice in the industry depends on the choice of the industry leader. The paper explains the supermodular game between the firms in an industry.Design/methodology/approachGame theory, industrial organization and non-convexity theories have been used in this paper to identify the choice between the HR and the AI in the customer relationship management.FindingsThe paper explains analytically the preference and demand for AI in the industry. Individual firm's strategic behavior and decision on choosing AI and the industry equilibrium have been studied logically. Moreover, the paper gives some light on the question of employment in presence of AI. The paper proves that in the presence of AI, labor demand will not be reduced but both will be used.Originality/valueThis work proves for the first time using some logical derivation that AI will not crowd out labor from the market. Moreover, to run AI, labor should also be used. It has been proved that to complete a job with speed and quality, both AI and HR are to be used.

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The Relationship between the Indivisibility of Labor, the Wage Equation and the Hazard Rate of Unemployment

Das

Mukherjee

2020

SSRN Journal

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A Relationship Between the Factor Indivisibility and the Output Elasticity of the Indivisible Factor

Cited by 4 publications

References 25 publications

Managing the job guarantee public policy schemes: a strategic approach

Managing the job guarantee public policy schemes: a strategic approach

Understanding the choice of human resource and the artificial intelligence: “strategic behavior” and the existence of industry equilibrium

The Relationship between the Indivisibility of Labor, the Wage Equation and the Hazard Rate of Unemployment

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