In your post: Labor Demand Elasticity: Boredom is Thoughtless, the cited research mentions that labor tends to become more elastic with less regulations. My first guess is that it would actually get more elastic the more draconian the regulations, and or wage levels? I'm thinking if we made minimum wages $1,000 an hour, labor demanded sh…
In your post: Labor Demand Elasticity: Boredom is Thoughtless, the cited research mentions that labor tends to become more elastic with less regulations. My first guess is that it would actually get more elastic the more draconian the regulations, and or wage levels? I'm thinking if we made minimum wages $1,000 an hour, labor demanded should be extremely elastic? So I wonder if you could elaborate on that a little? *Also bonus question, and feel free to ignore this: In your labor economics course notes you mention "workers have always earned their marginal productivity," just wondering if some empirics come to mind that reinforce this? Thank you again for your engagements with us Bryan!
I think the idea is that when you're allowed to hire and fire with impunity, your decisions are more responsive to wages.
On the "workers have always earned their marginal productivity," this is mostly just an appeal to common sense. I'd probably word it more carefully if I were writing it today.
In your post: Labor Demand Elasticity: Boredom is Thoughtless, the cited research mentions that labor tends to become more elastic with less regulations. My first guess is that it would actually get more elastic the more draconian the regulations, and or wage levels? I'm thinking if we made minimum wages $1,000 an hour, labor demanded should be extremely elastic? So I wonder if you could elaborate on that a little? *Also bonus question, and feel free to ignore this: In your labor economics course notes you mention "workers have always earned their marginal productivity," just wondering if some empirics come to mind that reinforce this? Thank you again for your engagements with us Bryan!
I think the idea is that when you're allowed to hire and fire with impunity, your decisions are more responsive to wages.
On the "workers have always earned their marginal productivity," this is mostly just an appeal to common sense. I'd probably word it more carefully if I were writing it today.
Thank you.