Monday, December 9, 2013

Why Are Jobs Scarce And Wages Falling?

Noah Smith links to a study by a labor economists which concludes that unemployment has not been caused by poor education or the use of robots.  It is primarily the result of globalizing the labor market. The law of supply and demand suggests that a huge increase in the supply of a factor of production should lead to greater competition between suppliers of that factor and the price paid for that factor. 

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