3 ms·
The assumption that lower wages depresses labour supply is a pretty good one. Supply curves slope upwards, i.e., if they pay you less, you work less. The other
by dash2 8y ago
The assumption that lower wages depresses labour supply is a pretty good one. Supply curves slope upwards, i.e., if they pay you less, you work less.
The other point they make is that men's wages declined more than women's, which might explain why women are more likely to work. (Assume couples need to make $X per week in the labour market; when male wages drop, the tradeoff between male and female employment changes in favour of the latter.)
I agree that increasing labour supply would also decrease male wages.
- dredmorbius 8y agoBackward-bending supply curves, at the extreme limit. https://old.reddit.com/r/dredmorbius/comments/53mcxn/backward_s_shaped_supply_curves/ https://old.reddit.com/r/dredmorbius/comments/53mcxn/backwar...