Unless you’ve been living under a rock, you know that
Janet Yellen will probably be the next head of the Federal Reserve.
I did a search on her publications and these are two of the
most cited articles.
"The Fair Wage-Effort Hypothesis and Unemployment." Quarterly Journal of Economics 105.2 (1990): 255-83.
2 comments:
She seems to be an advocate of fair pay. Starting with the hypothesis that people put out less effort when they believe their wage is below average, to the contention that self-esteem is negatively affected in underpaid workers. All true! But like all economics, putting it to equations pretty quickly starts looking silly. And then there are many other reasons a person may agree to a lower wage, e.g. learning self-sufficiency, finding true community, etc. I like Janet. I just wonder whether she can even do anything about the problem(s) she sees, now that she the new Fed Chair. Go Janet!
I certainly hope she is successful and addresses what is essentially our underclass problem. The Fed doesn't have that many tools tho.
Post a Comment