Bill Burgess wrote: > May I extend the question to ask for a simple > version of how neoclassicals explain, in more > developed countries where output/worker has > risen, there has been a decline in wage > levels determined by the marginal product of > labour? Were past wages above MP, and more global > competition has pushed them down closer to their > real MP?
the NC says: it's quite possible that the average product of labor has risen, but changes on the supply side of labor markets meant that the marginal product of labor fell relative to the average product. > Is it only the MP of only *some* types > of labour that has declined; for others it has > risen? the NC says: we have gone through a period of skill-biased technical change (due to computerization, etc) where the bias runs against those with low "human capital." -- Jim Devine / this space for rent. post no bills.
