Tag: wages
Even as average weekly earnings rise each month as lower-paid workers lose their jobs. I need to add a word about the potential impact on Social Security benefits from the pandemic and the shutdown of the economy. Specifically, following a point made by Andrew Biggs, I argued that to the extent that COVID-19 results in…
Abstract Nonemployment is often posited as a worker’s outside option in wage setting models such as bargaining and wage posting. The value of nonemployment is therefore a key determinant of wages. We measure the wage effect of changes in the value of nonemployment among initially employed workers. Our quasi-experimental variation in the value of nonemployment…
