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>>Business then has to compete with that to attract labour. Except the fact that they don't, when speaking about low end jobs/seasonal occupations. >>Simple co

>>Business then has to compete with that to attract labour. Except the fact that they don't, when speaking about low end jobs/seasonal occupations. >>Simple competition sorts it out. Except the fact that businesses eroded work stability and security to shift power dynamic of employer <-> employee massively in employer favor (again largely in case of low end jobs, though (was it) H1-B abuse exploits white collar workers). So employees are desperate to find employment and afraid to loose their current. That really kills any 'wage competition' and is a run to the bottom. "But the rate of pay increase still was markedly less than historical relationships with labor market conditions would have predicted. Atypical restraint on compensation increases has been evident for a few years now and appears to be mainly the consequence of greater worker insecurity." by Alan Greenspan [0] This whole idea of 'market will correct itself out' works great on paper, it just doesn't work in reality when you insert people into equation. [0] https://www.federalreserve.gov/boarddocs/hh/1997/february/testimony.htm https://www.federalreserve.gov/boarddocs/hh/1997/february/te...

barry-cotter 7y ago
Revisiting the Global Decline of the (Non-Housing) Labor Share We identify two undocumented measurement challenges affecting corporate sector labor shares outside the United States: the inclusion of dwellings and the inclusion of self-employed workers in the corresponding sectoral accounts. Both issues have become more important over time, biasing corporate labor shares downward. We propose two methods to correct for these challenges and obtain `true’ non-housing labor share series. Contrary to common wisdom, the corrected series exhibit stable labor shares across all major economies, except the US, where the corrected labor share declines by 6 percentage points since 1980. https://drive.google.com/file/d/1RMTqNNJFUSxeMx9UsObAgqUeb3HU2K8i/view https://drive.google.com/file/d/1RMTqNNJFUSxeMx9UsObAgqUeb3H...

barry-cotter 7y ago

Revisiting the Global Decline of the (Non-Housing) Labor Share We identify two undocumented measurement challenges affecting corporate sector labor shares outside the United States: the inclusion of dwellings and the inclusion of self-employed workers in the corresponding sectoral accounts. Both issues have become more important over time, biasing corporate labor shares downward. We propose two methods to correct for these challenges and obtain `true’ non-housing labor share series. Contrary to common wisdom, the corrected series exhibit stable labor shares across all major economies, except the US, where the corrected labor share declines by 6 percentage points since 1980. https://drive.google.com/file/d/1RMTqNNJFUSxeMx9UsObAgqUeb3HU2K8i/view https://drive.google.com/file/d/1RMTqNNJFUSxeMx9UsObAgqUeb3H...