Archive for the ‘Wages’ Category

People on third base claiming they hit a triple, or marginal product theory at work…not!

July 3rd, 2015

One of the less defensible assumptions of microeconomics is that people get paid their “marginal product,” i.e., their wage equals the value of the output they produce. Thus, according to the theory, if the last worker hired is being paid an hourly wage less than the value of the firm’s output per hour, if would… Read more

Yeah, baby–new OT rule is out and it’s strong!

June 29th, 2015

I’ve got a longer piece up on PostEverything, but here are the key ‘grafs from the POTUS’s announcement on this tonight (my bold): We’ve got to keep making sure hard work is rewarded. Right now, too many Americans are working long days for less pay than they deserve. That’s partly because we’ve failed to update overtime… Read more

Josh Bivens offers sage and timely thoughts on wage targeting at the Fed…just in time for their big meeting!

June 15th, 2015

Well, what a coinky-dink! Just in time for the Federal Reserve’s Open Market Committee meeting tomorrow where they’ll be discussing the liftoff date for the interest rate they control, economist Josh Bivens has a smart new paper out on the importance of considering wage trends in the mix, written for our full employment project. Here,… Read more

LA goes big on the min wg

May 22nd, 2015

Over at the WaPo…as per the minimum wage literature, it’s an “out-of-sample” increase, which means we’ll need to monitor its outcomes. It’s also a pretty inspiring development, if you ask me.