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Federal Reserve Bank of Cleveland: 'Sticky Wages on the Layoff Margin'

Federal Reserve Bank of Cleveland: 'Sticky Wages on the Layoff Margin'
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How Distortive are Turnover Taxes? Evidence from Replacing Turnover Tax with VAT

Founded in 1920, the NBER is a private, non-profit, non-partisan organization dedicated to conducting economic research and to disseminating research findings among academics, public policy makers, and business professionals.

China , Pujiang , Shanghai , Zurich , Züsz , Switzerland , Utah , United-states , Irem-guceri , Eric-ohrn , Nathan-seegert , Jim-hines

Pandemic uncertainty slowing down Utah economic growth, new report shows

Pandemic uncertainty slowing down Utah economic growth, new report shows
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Utah bet on dropping pandemic benefits to get people back to work. It hasn't so far

Utah bet on dropping pandemic benefits to get people back to work. It hasn't so far
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Vaccinated consumers will fuel the economy's boom eventually — just not quite yet

For now, it's spending by unvaccinated people that is rebounding the fastest, one study shows.

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The Case for Higher Wages in Hard Times | Hellenic Shipping News Worldwide

The Case for Higher Wages in Hard Times
Pay cuts and salary freezes have become an unfortunate hallmark of the Covid-19 recession. Over seven million employees have seen their wages drop since March, and a great many others have had their pay frozen. But a handful of companies have bucked this trend and increased pay despite the economic crisis. In November, yogurt maker Chobani announced that it was raising its workers’ lowest hourly wage from $13 to $15; the floor was set at $18 in high-cost centers like New York. E-furniture retailer Wayfair followed suit last week with a $15 minimum.
These and other companies present such wage hikes as enlightened capitalism — a way to help employees during difficult times while also buying loyalty and goodwill that translate into higher productivity and lower turnover. It’s the latest entry in a century-old debate over whether companies can improve productivity and profits by paying their workers more. Economists refer to this possibility as the efficiency-wage theory: the idea that wages increased to above market level can effectively pay for themselves through increased worker motivation and retention. There is increasing evidence that efficiency-wage proponents may be right: Higher wages can at times boost the bottom line and — crucially for the current moment — pay cuts can elicit employee backlash and even sabotage.

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