braddelong.substack.com/p/briefly-note…
FIRST: You can think of the labor market as being in one of three different modes. In the first mode there is chronic over supply of labor at the prevailing wage. In the second mode the labor market is in balance, and in order for employment as a... 1/
FIRST: You can think of the labor market as being in one of three different modes. In the first mode there is chronic over supply of labor at the prevailing wage. In the second mode the labor market is in balance, and in order for employment as a... 1/
... whole to rise firms need to offer higher real wages. In the third mode the labor market is at full employment and even increasing wages will not increase employment in the economy as a whole. The labor market has been in the first mood for so long the employers regard... 2/
...the second as grossly irrational, and talk about "labor shortage" whenever we get into it. But mode two is not “labor shortage”. Mode three is when you can talk about "labor shortage":
Anne Laurie: Fruits of Their Labor: The Secret Is Leaking Out: ‘The Wall Street Journal 3/
Anne Laurie: Fruits of Their Labor: The Secret Is Leaking Out: ‘The Wall Street Journal 3/
...is shocked, shocked—companies that pay competitive wages draw the best, loyalest hires! Of course they knew that worked for MBAs, but who would have suspected even lowly wage serfs were capable of such motivated reasoning?… "After raising employee wages to $15/hour... 4/
...Klavon’s Ice Cream Parlor in Pittsburgh received ‘well over 1,000 applications’ for job openings. Co-owner Jacob Hanchar says customer service has improved and he hasn’t ‘noticed a difference on our bottom line’... LINK: <balloon-juice.com/2021/05/21/fri…> 5/
...One Video: Emi Nakamura: Is the Phillips Curve Getting Flatter? <> 6/END
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