As noted yesterday, I’m working on a longer piece about sky-high salaries—merit vs. “rents”—so I was interested to see this piece (“Invasion of the Supersalaries”—nice!) in the NYT this AM. That piece reports that “the median compensation of a chief executive in 2013 was $13.9 million, up 9 percent from 2012…” I’m assuming that 9%… Read more
I’m crunching on a longer piece on “rents” versus merit in US high-end salaries and their role in our uniquely high levels of inequality (“rents” here means being paid above your marginal product, or your individual contribution to your firm’s bottom line). Anyway, for good and I think obvious reasons, a strain of this literature… Read more
I think this is a pretty remarkable picture that hasn’t gotten enough attention, perhaps because it’s a touch complex. It shows the relationship between wage inequality among women workers and the minimum wage, and the fit is very tight. The blue line shows the gap in pay between middle- and low-wage women, i.e., the 50-10… Read more
Over at the NYT Economix blog: the flow point I made earlier here at OTE, getting back to ground zero on private sector jobs is not much to crow about, and sure, there’s a bit of wage growth, but nothing to get all wound up about, inflation-wise.
I’m often asked what President Obama can really accomplish on the economy with just “the pen and the phone,” i.e., what can he do without Congress. It’s a tough question, because moving the needle on unemployment or implementing economic policies that reach lots of people requires Congressional cooperation, of which there ain’t hardly none these days…. Read more