On a Theme by Williamson: A Stochastic Model for the Evolution of Global Labor Markets since 1830
Fariba Hashemi
DOI: 10.4236/me.2011.24065   PDF    HTML     4,389 Downloads   7,673 Views  


The cross-sectional distribution of wages has so far been neglected compared to the study of income differences across countries over time. We propose a stochastic model, built on the theory of diffusion processes, to describe the evolution of global labor markets since 1830. The model is applied to empirical data collected by Williamson, in order to describe the level and variation of cross-country wages. The empirical application validates the proposed method.

Share and Cite:

F. Hashemi, "On a Theme by Williamson: A Stochastic Model for the Evolution of Global Labor Markets since 1830," Modern Economy, Vol. 2 No. 4, 2011, pp. 584-588. doi: 10.4236/me.2011.24065.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] J. Williamson, “The Evolution of Global Labour Markets since 1830: Background Evidence and Hypotheses,” Explorations in Economic History, Vol. 32, No. 2, 1995, pp. 141- 196. HHdoi:org/10.1006/exeh.1995.1006
[2] P. Krugman, “Increasing Returns and Economic Geography,” Journal of Political Economy, Vol. 99, No. 3, 1991, pp. 483-499. HHdoi:org/10.1086/261763
[3] M. Fujita, P. Krugman and T. Mori, “On the Evolution of Hierarchical Urban Systems,” European Economic Review, Vol. 43, No. 2, 1999, pp. 209-251. HHdoi:org/10.1016/S0014-2921(98)00066-X
[4] D. Levine and S. Modica, “Anti-Malthus: Evolution, Population, and the Maximization of Free Resources,” 2011 (Forthcoming).
[5] J. Hirshleifer, “The Dark Side of the Force: Economic Foundations of Conflict Theory,” Cambridge University Press, Cambridge, 2001.
[6] P. Krugman, “The Self-Organizing Economy,” Blackwell Publishers, Oxford, 1996.
[7] R. Axtel, “Zip distribution of US firm sizes,” Science, Vol. 293, No. 5536, 2001, pp. 1818-1820. HHdoi:org/10.1126/science.1062081
[8] F. Hashemi, “A Dynamic Model of Size Distribution of Firms Applied to U.S. Biotechnology and Trucking Industries,” Small Business Economics, Vol. 21, No. 1, 2003, pp. 27-36. HHdoi:org/10.1023/A:1024433203253
[9] R. Lucas, “Trade and the Diffusion of the Industrial Re- volution,” American Economic Journal: Macroeconomics, Vol. 1, No. 1, 2009, pp. 1-25. HHdoi:org/10.1257/mac.1.1.1
[10] R. Barro and X. Sala-i-Martin, “Technological Diffusion, Convergence, and Growth,” Journal of Economic Growth, Vol. 2, 1997, p. 126. HHdoi:org/10.1023/A:1009746629269
[11] D. Fudenberg and D. Levine, “Learning and Equilibrium,” Annual Review of Economics, Vol. 1, 2009, pp. 385-419. HHdoi:org/10.1146/annurev.economics.050708.142930
[12] D. Levine, “Neuroeconomics,” 2011 (Forthcoming).
[13] A. Alchian, “Uncertainty, Evolution and Economic Theory,” Journal of Political Economy, Vol. 58, 1950, pp. 211-221. HHdoi:org/10.1086/256940
[14] J. Hirshleifer, “Economics from a Biological Viewpoint,” Journal of Law & Economics, Vol. 20, 1977, pp. 1-52. HHdoi:org/10.1086/466891
[15] J. Hirshleifer, “Competition, Cooperation, and Conflict in Economics and Biology,” American Economic Review, Vol. 68, 1978, pp. 238-243.
[16] D. Levine, “Is Behavioral Economics Doomed? The Ordinary versus the Extraordinary. Open Book Publishers,” 2009 (Forthcoming).
[17] F. Hashemi, “An Evolutionary Model of the Size Distribution of Firms,” Journal of Evolutionary Economics, Vol. 10, No. 5, 2000, pp. 507-521. HHdoi:org/10.1007/s001910000048
[18] M-O. Hongler, R. Filliger and P. Blanchard, “Soluble Models for Dynamics Driven by a Super-Diffusive Noise,” Physica, 2006, pp. 301-315.
[19] M-O. Hongler, H. Soner and L. Streit, “Stochastic Control for a Class of Random Evolution Models,” Applied Mathematics and Optimization, Vol. 49, 2004, pp. 113- 121.
[20] O. Besson and G. de Montmollin, “Space-Time Integrated Least Squares: A Time-Marching Approach,” International Journal for Numerical Methods in Fluids, Vol. 44, No. 5, 2004, pp. 525-543. HHdoi:org/10.1002/fld.655
[21] A. Toda, “Income Dynamics with a Stationary Double Pareto Distribution,” Physical Review, Vol. 83, 2011, pp. 1-4.
[22] F. Hashemi, "East Asian Economic Growth-An Evolutionary Perspective", Journal of Service Science and Management 2011, 4, 280.
[23] J. Williamson, "Globalization, Labor Markets and Policy Backlash in the Past", Journal of Economic Perspectives, Vol. 12, No. 4, 1998, pp. 51-72.

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.