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Could the correlation be due to "the dreaded third thing"?[1] (a common cause) Perhaps large corporations are now deriving a large portion of their income and
by nickff 13y ago
Could the correlation be due to "the dreaded third thing"?[1] (a common cause)
Perhaps large corporations are now deriving a large portion of their income and profits from government-derived sources, and relationships between executives and government officials or regulators; if this is true, there is no reason to give raises to employees, as the low-level workers are relatively unimportant.
[1]http://www.econtalk.org/archives/2013/10/oster_on_pregna.html http://www.econtalk.org/archives/2013/10/oster_on_pregna.htm...