Switch the phrase "labor shortage" for "wage shortage" & all these news stories make more sense.

Some employers won't raise wage offers to hires bcz internal equity then pressures for raises to incumbents, & that reduces profit.

Signing bonuses avoid this & ain't it.
3 things can all be true. Employer prefers to:

1. hire a worker at wage currently paid to incumbents,

2. hire a worker at higher wage if they could keep incumbents at current wage,

3. NOT hire a worker at higher wage bcz they'll have to give incumbents raises or some'll quit.
This is a basic idea of monopsonistic labor markets. @arindube & co-authors have a great paper showing the importance of the internal equity constraint.
In a monopsonistic labor market, there is a wage shortage. Employers set wages and employment inefficiently low to maximize their profits.

People usually talk about quantity shortages, rather than price shortages. But, I think wage shortage accurately describes the issue.

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More from @aaronsojourner

26 Mar
Public feeling towards labor unions is more positive than in any year on record back over half a century, @electionstudies.

Public feeling towards big business is more negative than in any year on record.

The gap is bigger than any year on record.
The representation gap -- the difference between the share of workers who want a union & share who have one -- has been growing. Best evidence @TomKochan @_elkelly @ILRReview.

More than half of all workers want to belong to a union but less than 11% do.
Read 13 tweets
25 Mar
898K Americans filed new regular state + PUA claims for unemployment insurance in the week ending 3/20, down 13% from prior week.

Tho this is still a very high level historically, it's the lowest since 51 weeks ago when we experienced a record-smashing claims spike to 3.3m.
The share of adults employed is lifting off & workers' expectations about the labor market continues its rapid improvement, per new evidence @uscensusbureau #householdpulsesurvey.
The rise in employed share over the last month is corroborated in Bick & Blandin's quasi-CPS.
Read 10 tweets
25 Mar
When @amazon's official news account is talking about peeing in bottles, that's workers winning.

The ratio!
We all deserve dignity on the job. This ain't it, @amazon.
Read 4 tweets
25 Mar
Share of adults employed lifting off, up 0.5 pp in last 4 weeks& across #JobsDay ref wks. Most in 3 months.

% of adults reporting being employed

56.9 : Mar3-15
56.5 : Feb17-Mar1
56.4 : Feb3-15
55.4 : Jan20-Feb1
56.3 : Jan6-18
56.8 : Dec9-21
56.3 : Nov25-Dec7
58.1 : Nov11-23
Workers' labor market expectations continue very rapid improvement. May foreshadow real gains.

Millions expecting employment income loss in next 4 weeks : period
47.5 : Mar3-15
51.0 : Feb17-Mar1
57.8 : Feb3-15
61.6 : Jan20-Feb1
66.1 : Jan6-18
76.5 : Dec9-21
76.7 : Nov25-Dec7
Read 4 tweets
5 Mar
Happy #JobsReport.

Forecasts’ center:
+210K jobs, up from 49K last month
6.3% unemployment

8:30 ET @BLS_gov delivers the most-important signals abt how economy is changing. Hope you’re staying healthy.
The incomplete recovery stalled this fall as the virus surged again.

Since April, Americans' have had more lost jobs than the maximum job loss during the Great Recession.
The economy added 379,000 jobs in January and revisions to the prior two months added another 38,000 to the tally. That's the biggest gain since Oct.
Read 14 tweets
4 Dec 20
Happy #JobsDay. 8:30 ET @BLS_gov delivers the most-important signals abt how economy is changing.

Forecasts' center:
+432,000 jobs
6.8% unemployment, tick down from 6.9%

But lots of reason to expect weaker jobs growth.
+245K jobs gained last month (mid-Oct to mid-Nov).

Small +11K revisions of last 2 months.

This continues the deceleration of job growth we seen steadily for months.
We are down 9.8 million jobs since Feb and growth is decelerating, likely to turn negative over the current month.

For comparison, during the Great Recession, we lost fewer than 9 million jobs.
Read 19 tweets

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