Category Archives: labor market

Wage differentials vs. productivity differentials, continued

Tyler Cowen asks, Aren’t the waiters more productive *because they are serving wealthier customers*? Gosh, that throws an even bigger monkey wrench into the whole deal. Let me switch examples. Suppose that Jeff Bezos can either rely on Uber or … Continue reading

Posted in Economic education and methods, labor market, Tyler Cowen is my Favorite Blogger | 14 Comments

Are locational wage differentials also productivity differentials?

I think that an argument about this arose in the comments on this post. Let me provide a framework for discussion. Suppose that we observe that zip code X has higher average wages for waiters than zip code Y. Can … Continue reading

Posted in books and book reviews, disaggregating the economy, Economic education and methods, labor market | 22 Comments

Disaggregating the economy: levels of digital skills

Mark Muro writes, the wage premium for digital skills (highlighted above) has nearly doubled since 2002. That means that the mean pay of workers in higher-level digital occupations (about $73,000) now more than doubles the $30,000 wage of low-digital workers. … Continue reading

Posted in disaggregating the economy, labor market | 3 Comments

Work becomes optional

John Coglianese writes, participation has changed along an understudied margin of labor supply. I find that “in-and-outs”—men who temporarily leave the labor force—represent a growing fraction of prime age men across multiple data sources and are responsible for roughly one … Continue reading

Posted in labor market | 7 Comments

Two stories about Shake Shack

1. CNBC reports, [Shake Shack founder Danny] Meyer has long been an employee advocate, going so far as to eliminate tipping at his full-service restaurants last year in favor of compensating staff so they don’t need to rely on tips. … Continue reading

Posted in labor market | 8 Comments

Scott Winship on labor-force participation

From a summary of his research: Obama’s Council of Economic Advisers (CEA) makes the argument that the decline in prime-age male labor is a demand-side issue that ought to be addressed through stimulative infrastructure spending, subsidized jobs, wage insurance, and … Continue reading

Posted in labor market | 7 Comments

Should we miss the working class?

Brink Lindsey writes, people are not machines, and they don’t like being treated as such. By inducing millions of people to take up factory work and creating a social order in which those millions’ physical survival depended upon their doing … Continue reading

Posted in Economic History, income distribution-wealth-poverty, labor market | 13 Comments

Occupation and Gender

Justin Fox writes, If you are one of those who believe that men are congenitally disposed to prefer working with things and women to prefer working with people, these numbers offer some support for your position. Some support? If you … Continue reading

Posted in labor market, Mark Thoma is Indispensable | 16 Comments

Wages and Perks

Megan McArdle writes, Both the supply curves and the demand curves for labor have been undergoing substantial transformations that may simply have shifted the economy to a new equilibrium. Which is an economic jargonish way of saying this may be … Continue reading

Posted in labor market | 10 Comments

Why American Cities Cannot Compete on Cost

Handle comments, if a company can move some operations even 50 miles away from a high price place, then why not move them to the cheapest feasible place? …If a job doesn’t have such distance-limitations regarding interactions with other humans, … Continue reading

Posted in business economics, labor market | 13 Comments