Monday, January 11, 2010

Teens and seniors crowded out of the job market

Political Calculations goes through the analysis. What is happening?

The Wage Quant is too high for teens. When we partially or completely deflate, we have shortened the distribution, fewer intermediate steps in production. Labor classification follows production of goods. So if we measured the teenage wage portion of the wage arrangement, then in a deflated state, teens occupy part of a broader swath of lower skilled workers. In other words, the integer appearing in the Shannon channel exponent has dropped, the degree of Entropy is less. But, fewer firms, each firm a bit larger means that teens get promoted within the firm than in the market. Teens no longer have the teen after school labor market, or summer job market, or holiday market.

So model the labor market as a yield curve, employees moving through the production line. The raw material are young people. When this labor yield deflates, the slight Eigenfunction devoted to teen employment, entry level jobs, disappears.

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