Thursday, October 27, 2011

Wages of Recent College Grads Are in Decline

This article describes the decline in wages for recent college grads. They do better than those without degrees but their income is falling. If there were a real shortage of college grads incomes should be rising. If the law of supply and demand still works, falling wages must mean that supply is greater than demand. This result suggests that a shortage of educated employees is the cause of unemployment and falling wages.

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