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The original report cites trade effects. "Finally, economic theory and evidence clearly indicates that growing trade with low-wage countries should boost wage
by philipkglass 8y ago
The original report cites trade effects.
"Finally, economic theory and evidence clearly indicates that growing trade with low-wage countries should boost wage inequality in the United States and lower wages for workers without a four-year college degree. This type of trade grew significantly since the 1970s. Imports from low-wage countries were equal to 0.7 percent of U.S. GDP in 1973, but 6.3 percent in 2016."
From the original by the Economic Policy Institute here:
https://www.epi.org/publication/what-labor-market-changes-have-generated-inequality-and-wage-suppression-employer-power-is-significant-but-largely-constant-whereas-workers-power-has-been-eroded-by-policy-actions/ https://www.epi.org/publication/what-labor-market-changes-ha...
This part of the WaPo article seems at odds with that original report:
"While many economists pin much of the blame for wage stagnation on impersonal market forces, such as free trade and technological change, EPI’s Josh Bivens and Heidi Shierholz contend that specific policy decisions — including efforts to weaken unions, the decay of the minimum wage and monetary policy that prioritizes low inflation over full employment — are responsible for tilting the balance of power away from workers and toward their employers."
That sentence implies that the EPI report excludes trade as a cause but the EPI report does no such thing, even if it doesn't highlight trade first and foremost.