On the minimum wage, let’s be shy about what we know, but not too shy. Nuance should be welcomed in debates about empirical findings in economics. But when it comes to increases in the minimum wage, we must be careful to avoid throwing our hands up in despair and concluding that, because there’s an ongoing… Read more
In case OTE’ers missed these: We need to be more honest about the costs of trade. The policy and politics behind some of today’s populist anger, at least the part about the economy.
Though last Friday’s jobs report came in a bit under expectations, many analysts, myself included, noted that (nominal) wage growth has picked up in recent months. That is both expected and precisely as it should be. As the job market tightens, employers should have to bid wage offers up more to get and keep the… Read more
One reason we don’t see nearly enough wage growth in the US labor market is that employers rarely have to compete for workers. Often this is due to weak demand (persistent labor market slack), but discrimination by race and gender and low unionization rates can also play a role in reduced worker bargaining power. A… Read more
I’m sure it’s no surprise that I’d like the Fed to announce later today that they’re holding rates steady and maintaining a pretty dovish stance. Inflation remains unthreatening, real GDP growth in the first quarter is likely to come in at <1%, and—the subject of this post—the typical (median) worker is only now getting a… Read more