tag:blogger.com,1999:blog-7895164153505105997.post3297045124739967806..comments2024-01-17T00:45:37.075-08:00Comments on Bud Meyers: Is Labor just another Commodity (Millennials)Bud Meyershttp://www.blogger.com/profile/02065020063363023395noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7895164153505105997.post-81041609846545499522015-06-11T13:40:08.654-07:002015-06-11T13:40:08.654-07:00UPDATE by Paul Kruman:
The Mutability of Wages
&...UPDATE by Paul Kruman:<br /><br />The Mutability of Wages<br /><br />"Arindrajit Dube enlarges on my post about efficiency wages, pointing out that the same logic applies to firms that have monopsony power. That’s a very good point — and I think we’re circling in on an important part of the logic behind the new view on inequality policy, which says that policies to enhance worker bargaining power can have major effects on the distribution of market income. What’s going on here? Maybe two schematic pictures can help ..."<br /><br />http://krugman.blogs.nytimes.com/2015/06/11/the-mutability-of-wages/<br /><br /><br />Wiki: "The monopsonist can dictate terms to its suppliers, as the only purchaser of a good or service, much in the same manner that a monopolist is said to control the market for its buyers in a monopoly, in which only one seller faces many buyers."<br /><br />This is explained in the book " The Wal-Mart Effect: How the World's Most Powerful Company Really Works" --- how with its monopsony power, how large companies like Walmart controls supplier's prices (forcing offshoring) and dictating lower wages on the national level.<br />Bud Meyershttps://www.blogger.com/profile/02065020063363023395noreply@blogger.com