There are now more mobile phones than people
26 Nov 2015 1 Comment
in applied welfare economics, development economics, economics of media and culture, entrepreneurship, growth miracles, industrial organisation Tags: cell phones, creative destruction, international technology diffusion, living standards, mobile phones, technology diffusion
Uber is creative destruction on steroids
23 Nov 2015 Leave a comment
in economics of regulation, entrepreneurship, industrial organisation, survivor principle Tags: creative destruction, entrepreneurial alertness, taxi regulation, Uber
The robot revolution is overrated
22 Nov 2015 Leave a comment
in applied price theory, economic history, industrial organisation, international economics, labour supply Tags: automation, creative destruction, entrepreneurial alertness, industrial revolution, mechanisation, robots, technological unemployment
Refereeing processes at magazines versus academic journals
22 Nov 2015 Leave a comment
in economics of media and culture, industrial organisation, survivor principle Tags: conjecture and refutation, legacy media, refereeing
Productivity and the National Living Wage
21 Nov 2015 1 Comment
in applied price theory, applied welfare economics, entrepreneurship, industrial organisation, labour economics, minimum wage, politics - New Zealand, poverty and inequality, survivor principle Tags: British economy, living wage
A brilliant point by @FlipChartRick in the reblog. What sort of single year labour productivity increase is required to cover a UK living wage increase. Basic arithmetic kills.
A 6.6% annual productivity growth would be required to fund a living wage. This will be far above trend and would be required in sectors such as services that are not at all known for rapid productivity growth because of Baumol’s disease.
A subsequent Twitter exchange updated a key chart to include Australia and New Zealand.
The CIPD and the Resolution Foundation are collaborating on a piece of research into the impact of the National Living Wage (NLW). According to their first study over half of the country’s employers expect to be affected by it. Around a third said they would meet the increased cost by improving productivity and 22 percent said they would take lower profits. Only 15 percent said they would lay off workers or slow down recruitment.
That all sounds promising but, as Matt Whittaker points out, the productivity increase needed to cover the cost of the NLW could be pretty steep. As you might expect, there is a strong relationship between rising minimum wages and rising productivity. Most countries in the OECD have not strayed very far from this line of best fit.
In the absence of any productivity growth, the proposed NLW would move some way from the line (the green circle) by 2016 and…
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The rise of the service economy
19 Nov 2015 Leave a comment
in economic history, industrial organisation, survivor principle Tags: creative destruction, manufacturing, service economy
How labour and other markets work
18 Nov 2015 Leave a comment
in applied price theory, Austrian economics, entrepreneurship, human capital, industrial organisation, labour economics, labour supply, Milton Friedman, minimum wage, occupational choice, poverty and inequality, survivor principle, unions Tags: market process, The meaning of competition
What does @Walmart do wrong but @APPLEOFFIClAL does right?
16 Nov 2015 Leave a comment
in applied price theory, applied welfare economics, entrepreneurship, industrial organisation, politics - USA Tags: Apple, creative destruction, entrepreneurial alertness, Left-wing hypocrisy, Leftover Left, superstar wages, superstars, top 1%, Twitter left, Walmart
Trust in media by ideology
15 Nov 2015 Leave a comment
in economics of information, economics of media and culture, industrial organisation, politics - USA, Public Choice, survivor principle Tags: expressive voting, media bias, rational ignorance, rational irrationality, The meaning of competition
Creative destruction in British manufacturing employment
13 Nov 2015 Leave a comment
in applied price theory, applied welfare economics, economic history, industrial organisation, labour economics, labour supply, survivor principle Tags: British economy, British history, creative destruction, endogenous growth theory, labour reallocation, technological unemployment
@dsmitheconomics @thesundaytimes In mid-60s, about a third of workers were employed in manufacturing. Now 8%! http://t.co/ipmr7XvIme—
Andrew Sentance (@asentance) July 12, 2015
Do the European welfare states free ride off American entrepreneurship and innovation?
12 Nov 2015 1 Comment
in applied price theory, applied welfare economics, comparative institutional analysis, constitutional political economy, economic history, economics of regulation, entrepreneurship, industrial organisation, politics - USA, public economics, survivor principle, taxation, technological progress Tags: creative destruction, Daron Acemoglu, Denmark, entrepreneurial alertness, Eurosclerosis, international technology diffusion, taxation and entrepreneurship, taxation and innovation, taxation and investment, taxation and labour supply, technology followers, welfare state
Source: Daron Acemoglu A Scandinavian U.S. Would Be a Problem for the Global Economy – NYTimes.com.
Unions – not the cause of our 40 hour workweek
10 Nov 2015 Leave a comment
in applied price theory, applied welfare economics, economic history, entrepreneurship, health and safety, human capital, industrial organisation, labour economics, labour supply, Marxist economics, minimum wage, politics - Australia, politics - New Zealand, politics - USA, poverty and inequality, unions Tags: The Great Enrichment, union power, union wage premium
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