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In “Ups and Downs: How Wages Change Over the Business Cycle,” Kevin Huang discusses the shift in the cyclicality of … real wages — from countercyclical before World War II to procyclical postwar. He outlines the standard explanation for this …
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Our final article looks at the difference in wages between high-skill workers (such as those who might work in biotech …
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In the 18th century, Adam Smith offered his theory of the invisible hand and the view that perfect competition is the main spur to economic efficiency. The theory of the invisible hand, as it has evolved in modern economic thought, treats creative activity as being outside the scope of economic...
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Does trade with low-wage countries steal American jobs and, hence, rob American workers of higher wages and a higher …
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Job losses may involve not only lost earnings during unemployment but also declines in earnings at subsequent jobs. After a time consuming job search, workers may need to restart their careers from scratch, accepting a lower wage. Workers may also need time to acquire new skills, and total...
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, its effect on unemployment in Germany was surprisingly mild. While U.S. unemployment soared from 4.8 percent to 9 … recession itself was smaller in Germany. Actually, the severity of the recession as measured by the drop in output was greater … in Germany than in the United States. German output, as measured by the peak-to-trough difference in real gross domestic …
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