Is the declining value of labor behind the dangerous rise in income inequality?

Artículo en Foreign Policy

Technology vs globalisation as cause of the declining labour share

FT Alphaville reseña el debate

Raising the minimum wage: Old shibboleths, new evidence

Laura D'Andrea Tyson reseña la investigación reciente sobre el salario mínimo

Bruegel: The minimum wage debate redux

On the folly of wage cuts in a recession

Reseña de Mark Thoma

More services means longer recoveries

Aca

Equilibrium is not full employment

Daniel Kuehn. Y aca: Full employment is an extra constraint

Some thoughts on the minimum wage: Theory

Daniel Kuehn

Màs sobre el debate del salario mìnimo

Compilaciòn del debate

A different case against the skills mismatch argument: irrelevance

FT Alphaville sobre un discurso de Janet Yellen

Businessweek sobre el desempleo de largo plazo en EEUU

Sobre los efectos del salario mìnimo

The Economist

The long decline of labor

Felix Salmon y FT Alphaville

Comentario a Felix Salmon

Sobre flexibilidad de los salarios

Jordi Gali

Empleo mal direccionado: The implications of Paul Baran

Parte II. Parte III

The Beveridge curve shows a structural shift in US employment dynamics

Aca

Más sobre la curva de Beveridge en EEUU

Trade-offs between inequality, productivity, and employment

Interfluidity y Tyler Cowen

The improving US labor market

Aca

Jobs, inflation, expectations, and causation

Nick Rowe

Màs de Nick Rowe: Strategy space and the theory of monetary policy

Alchian on the meaning of keynesian “involuntary” unemployment

David Glasner. Màs. Otro

The labor mismatch problem

Aca

Classical economics and recession in many countries

John Quiggin

 There is, though, one way in which the current Great Recession/Lesser Depression provides a sharp test of a critical proposition in economics. All forms of classical economics involve, in one form or another, the claim that the causes of unemployment are to be found in labour markets, and not in macroeconomic variables such as the level of aggregate demand. That’s equally true of the Say’s Law version of classical economics criticized by Keynes, the New Classical macroeconomics of Robert Lucas and the attempts by Real Business Cycle theorists like Kydland and Prescott to explain cyclical fluctuations in terms of labor market shocks.

 The crucial problem for all these theories is that labor markets and the associated institutions operate mainly at the national level. Even within the EU, different countries have very different labor markets. So, it is essentially impossible for labor markets in many different countries to move together, except as the result of macroeconomic influences operating at an international level[1]. That means that the occurrence of a sharp and sustained increase in unemployment, taking place in many countries at once, is inconsistent with classical economics.

 This point seems trivially obvious, but as far as I can tell hasn’t been made, or at least not clearly. Once it’s conceded, it seems impossible to avoid a view of the world that is basically Keynesian in its analysis of the macroeconomy. It is possible to hold such a view and reject Keynesian policies on pragmatic grounds, as in Friedman’s critique of ‘fine-tuning’. But the longer and deeper the recession the harder it is to sustain this view.

The trend is the cycle

Aca

"The conclusion is that jobless recoveries are due entirely to jobless recoveries in routine occupations. In this group, employment never recovers beyond its trough level, nor does it come anywhere near its pre-recession peak. This is in stark contrast to earlier recessions."