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Nighttime Must-Read: Nick Bunker: One Slack Measure to Rule Them All? - Washington Center for Equitable Growth
How about prime-age EPOP?… It works here. Looks to me that the up-tick in ECI growth seems to be happening around the same time as the up-tick in the growth of the prime-age EPOP…. I thought it was interesting how well prime-age EPOP did and that it tracked ECI so well.
Afternoon Must-Read: Arindrajit Dube, Laura Giuliano, and Jonathan Leonard: Fairness and Frictions: The Impact of Unequal Raises on Quit Behavior - Washington Center for Equitable Growth
At a large U.S. retailer…
…discrete pay steps created discontinuities in raises, where workers initially earning within 1 cent of each other got raises that differed by 10 cents…. We find large causal effects of wages on quits…. The large effects of wages on quits mostly reflects relative-pay concerns and not market comparisons…. After accounting for peer effects, quits do not appear to be very sensitive to wages–suggesting substantial employer wage–setting power…. The relative-pay concerns are asymmetric… driven mainly by workers who are paid below their peers, suggesting concerns about fairness or disadvantageous inequity.