Click for short video
For more on the two "sides" to this argument, see
- The Redistribution Recession (2012, esp., Figure 11.1: At least half, but less than 100.0%, of the reduction in labor was a result of public policies that redistribute).
- Paul Krugman's blog entry Nov 2012.
See more examples of economics questions answered by machine.
1 comment:
Professor Mulligan,
Theoretically, I think Paul's point - given your initial argument - is quite valid. His argument was based on the assumption that the labor demand curve did not shift, an assumption that I think is fair considering the fact that your argument appears to discuss shifts in the labor supply curve. Of course, if your argument provides for the fact that the labor demand curve does in fact shift, then of course wages could go down, as you so laboriously demonstrated in this short video. So, given that your argument provides for shifts in the labor demand curve, what caused it to shift? A decrease in total factor productivity?
Post a Comment