But there were signs of that changing, both politically, through minimum wage changes, and economically, through job growth from small businesses.
That work is done by federal employees, who were not affected by the wage changes.
Endogenous wage changes and sector mobility occur as labor market participants learn about these unobserved skills.
The research shows that those working in restaurants and shops will benefit most from wage changes.
But wait — how can a zero lower bound on wage changes explain rising wages?
Democrats could try to stall the wage changes in the Senate, but the House vote will complicate such an effort.
"The Local Aggregate Effects of Minimum Wage Changes". Cooper, Daniel, María José Luengo-Prado, and Jonathan A. Parker, Working Paper.
Recent work by Barrattieri, Basu, and Gottschalk tries to get at the actual distribution of wage changes.
We also find that women, blacks, Hispanics, and students with low test scores are less likely to respond to wage changes.
Hall talks as if it were clear that there is no relationship between economic slack and inflation and/or wage changes.
Firms and workers would be less inclined to react to temporary divergences from the target by adjusting prices or demanding offsetting wage changes.
