The purpose of this research is to assess the evolution and the performance of the labor market in the U.S. and abroad. The research will consist of four separate, but related projects. The first will analyze the determinants of regional fluctuations in wages, earnings, and employment. This project is built around an empirical model of labor demand that can isolate the effects of product demand shifts and technical change on labor market outcomes. This is of interest for its application to local labor markets, and for its implications for changes in aggregate wages and employment. Second, a set of international comparisons will be developed regarding the evolution of labor markets, focusing on countries that provide important contrasts to the U.S. experience. A key goal is to compare the evolution of labor markets in Korea and Taiwan where productivity and wages tripled in less than 15 years to the more developed countries of the U.S. and Sweden that experienced sluggish growth in productivity and wages. Third, the relationships between changes in wages, labor supply, and unemployment will be determined and analyzed. Finally, work will be initiated on a modern, quantitative history of labor markets in the U.S. Among other topics this project will include work on changes in the structure of wages, the evolution of unemployment and labor force participation, changes in labor markets, and effects of immigration.
