3 ms·
A phenomenon known as "sticky wages" which means (in part[1]) that people are reluctant to quit and get a new job even if an "economically rational actor" would
by iudqnolq 7y ago
A phenomenon known as "sticky wages" which means (in part[1]) that people are reluctant to quit and get a new job even if an "economically rational actor" would.
1: The definition also includes the fact that employers are more reluctant to lower wages than they are to increase them, all else equal.
- dominotw 7y agowouldn't that keep wages stagnant though. I see wages rising in SV.
- iudqnolq 7y agoThat is a piece of evidence against that. It's not conclusive, because wages can both be rising and be rising less than they would be absent the practice. However, I definitely haven't made a strong case for what I said, just wanted to throw out the name of a theory in case people wanted to Google it an learn more. I'm not equipped to definitely answer a question well-regarded economists debate about, of course.