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
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
A few ideas over at PostEverything. One colleague already tells me I may be thinking too incrementally and what’s needed is a major shift in the power structure. I don’t disagree, though we’d be hard pressed–perhaps more than I admit in the piece–to even get these ideas implemented. So I’m all for simultaneously playing the… Read more
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
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.