More broadly, should we be paying more attention to nonsupervisory wages than managers' wages? I'd argue the reverse. Think of why we have the concept of core inflation: we want less volatile prices, which are more likely to reflect expected future inflation 5/Show this thread
We are seeing wage compression in America of the sort we've not seen since the 1940s. Because we have a very tight labor market for workers without a college degree.
For those bemoaning the growth in wage inequality since 1980, this should be a major lesson about the role that slack labor markets have played in exacerbating inequality in the last 40 years. Tight labor markets (and polices that support it) are a major arrow in our quiver.
We spent 26% of the time between 1948-1979 with unemployment rate under 4%. In the 1980-2019 period, that share of time was only 5%.
But would be great for David and I to talk to you about this stuff once we have a draft ready.
Dad, Economist, Cheap talker UMass Amherst, @nberpubs, visting BU Advisor: Stone Foundation Minimum Wage. Monopsony. Unemp Ins. Book project: The Wage Standard
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