Hi,
I'm working on my master thesis on the determinants of the labor sectoral reallocation on some countries and it's relevance to economic growth.
I am very interested in knowing if there's some literature of austrian economics on that topic. For example: ¿How bigger governments could slow the labor reallocation? or ¿What policies reduces the speed of labor reallocation?
Please let me know if you know some paper or book to read about it. It will be very helpful for me.
http://www.amazon.com/Labor-Economics-Free-Market-Perspective/dp/9812705686
Walter Block's book is the only one I can think of which specializes in this. Maybe you the empirical data there can help you.
But in any case, Austrian economics teaches that government intervention in the labor market, just like anywhere else, will always lead to relative impoverishment. What you can do is apply Austrian logic to specific labor-economics issues. Minimum wage, unemployment insurance, subsidizing unprofitable industries. All government interferences actually have some effect on labor reallocation since labor is an integral part of the economy.
Read Henry Hazzlit's Economics in One Lesson to get an idea of what I am talking about
Home ownership can reduce the ability to move to get a new job. So incentivizing home ownership over renting can increase unemployment due to slower reallocation. I read this in Glenn Beck's Arguing With Idiots. Not very highbrow I know... But the book is well referenced, so you might get something there.
By labor reallocation you mean government acting like a college placement office? Well, there are a lot of problems with this. For one, the government cannot know who the right person is for the right job. It is best if the firm and the worker come together on their own terms without a middleman (government) messing around. The labor reallocation bureaucracy loses nothing (and even stands to gain) from bad labor reallocation practices. It is very dangerous for workers to give up independence and responsibility to find a job to the government. Voluntary (private) job placement offices will not emerge because of the 'free' services of the government job reallocation agency. Government job reallocation agency is unconstitutional. It can be bribed by large corporations so they can get the most gullible of laborers and pay them very low wages. The income violently expropriated(taxes) from the public to pay for this bureaucracy would be more productively used eslewhere.
Is that enough of an answer for you? :D
By Labor reallocation, I mean the process in which all resources, including labor, flows to its most productive end. So, the faster the workers from the most unproductive sectors goes to the productive sectors, there will be more economic growth in the economy.
In the case of government effect on the labor reallocation, I think it could be two effects:
What do you guys think of that? and any literature? To make my thesis I need to support those ideas so your opinion and the literature will help me.
Regards,