Tuesday, April 11, 2006
For some time we've been a cheerleader for what used to be called "Lucas supply." The principle now goes by many names, but they all amount to the same thing: profit recoveries lead employment/wage recoveries.
He asks about the EPI's report on good/bad jobs, which isn't really what the EPI report does. That report shows that real wage growth has been greater for workers at higher levels of income, not by job classification or change in wages. It says it's from "author's calculations of CPS data", but the CPS doesn't show me anything that could be of help. (This maybe?) I would instead look at the CES data on real earnings.