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Employees, by contrast, think primarily of relative wages, especially very local relativities, and have only a fitful, vague, and temporary concern with their own productivity.
If women are relatively less skilled than men then they should gain from trade in developing countries (that are relatively more abundant in less skilled workers) through increased employment opportunities and higher relative wages.
For one thing, their departure will change relative wages.
By comparison, recent Pakistani immigrants had similar relative wages during the 2005-2008 period".
A higher inflation rate can make it easier for relative wages to adjust.
And marginal productivity theory is useful as a rough description of how relative wages are determined.
If relative wages are set to decline, the pain in New York could be greater than in other regions.
And low inflation makes it tougher for uncompetitive countries within a single currency to adjust their relative wages.
With zero inflation, however, changing relative wages is likely to require cuts in some workers' nominal pay.
By 2006, the authors found, "relative wages and relative education levels went back almost exactly to their pre-1930s levels".
The exchange rate has enormous impact on the relative wages of workers who have been subjected to international competition through trade policy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com