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Unfortunately, it comes at a time of increasing labor shortages.
Transit officials insisted yesterday that the labor agreement would have no direct effect on the level of the fare increase because expectations of increasing labor costs had long ago been built into budget projections, which show the agency facing huge deficits for a variety of reasons.
These findings are explained as the results of increasing labor mobility and a declining redistributive mechanism during this period, thus suggesting the development of China's urban labor market.
Hon Hai's stock has tumbled by more than half in past year because of increasing labor costs in China and worries about a slowdown in demand for some of the devices it makes.
Nonetheless, the longer-run implications also have to be taken into account, i.e., the risk of increasing labor market persistence and long-term unemployment by disadvantaging outsiders as well as delaying inevitable labor reallocation, which might also obstruct recovery.
New technologies that offered the prospect of increasing labor productivity and wages have instead proven to exacerbate the problem as traditional industries have been disrupted and jobs lost.
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Of the other large old-school industries, farming has already gone through a three to five x in terms of increased labor productivity.
Although immigration may also cause an outward shift in labor demand, the combination of increased labor supply and demand due to immigration likely yields excess supply in the labor market.
In a comparative study for Germany, France, and Italy, Boersch-Supan and Ludwig (2010) find positive effects of increased labor supply and show compelling evidence that increasing the retirement age may be an effective way to achieve that goal.
My results are in fact consistent with both studies: at the macroeconomic level, I also find that total factor productivity increased in the medium-run (as in Peri), even though there is no evidence of increased labor productivity at the firm or the industry level (as in Quispe-Agnoli and Zavodny).
Since the increased minimum wage has yet to be fully implemented, and will not be completely put in place for another seven years, it is unlikely that businesses are feeling the effect of increased labor costs immediately, added Burtless.
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CEO of Professional Science Editing for Scientists @ prosciediting.com