Question

PODCAST

Raising wages and strengthening economic progress for American workers

Jared Bernstein, Jay Shambaugh, and Adrianna PitaWednesday, March 14, 2018

The Brookings Institution has released a half-hour podcast interviewing two economists about strategies to raise wages and strengthen the economy for American workers.

In this episode, Jay Shambaugh, director of The Hamilton Project and senior fellow in Economic Studies at Brookings, and Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities, discuss the decades-long trend of real wage stagnation and policy solutions for increasing productivity, strengthening wage growth, and ensuring that national economic growth is reflected in the living standards of all American workers.

write a one-page summary bullet pointing their "policy solutions for increasing productivity, strengthening wage growth, and ensuring that national economic growth is reflected in the living standards of all American workers.

Answer 1

On this episode, Jay Shambaugh, director of The Hamilton assignment and senior fellow in economic stories at Brookings, and Jared Bernstein, senior fellow at the center on price range and policy Priorities, talk about the a long time-lengthy pattern of real wage stagnation and coverage options for increasing productiveness, strengthening wage development, and ensuring that countrywide monetary development is reflected in the living necessities of all American workers.

Revitalizing wage growth policies to get American staff a raise
Are wages fairly rising for American workers?
Get American employees a carry: policies to revitalize wage progress
Brookings Cafeteria Podcast: Alan Krueger on defending low-revenue staff from monopsony and collusion
Direct download of this episode (mp3)

With thanks to audio producer Gaston Reboredo, Chris McKenna, Brennan Hoban, and Fred Dews for further help.

The introduction of wage coverage is anticipated to cut down unemployment period for those with wage losses by a small quantity. The incentives for shorter length are two-fold. First, the wage of the brand new job is better with wage coverage, making work extra attractive than it's with out wage insurance. Second, the amount of time in the course of which a worker can collect wage insurance decreases for each day considering the fact that the job loss that a brand new job will not be determined.

There's, nonetheless, a counter-appearing incentive that whole annual sales is better with wage insurance, which is able to inspire longer unemployment spells in some circumstances. For illustration, with out wage coverage a employee earlier profits $forty two,000 per yr could take a new job at $30,000 per 12 months immediately after job loss with a purpose to make sure making a minimum annual earnings (say, to pay a personal loan). If the employee has wage coverage, nonetheless, and is confident that a fall-back job at $30,000 per 12 months will be on hand throughout the primary a number of months after job loss, she can find the money for to seek for as much as two months for an alternative and still have at least $30,000 in revenue for the period of the first 12 months after job loss (with $25,000 in earnings from ten months of employment on the fall-again job plus $5,000 in wage coverage).

The evidence from the Canadian gains complement mission is essentially the most immediately valuable to this question, as it offered a form of wage insurance (even though not exactly the identical as that being viewed in the U.S., as it had a requirement of discovering a brand new job within 26 weeks, 75 percentage gains alternative, extra generous unemployment coverage advantages, and many others.). This project discovered that unemployment intervals had been reduced quite, however no longer significantly. There used to be a massive increase within the percentage working full-time 26 weeks after job loss, possible driven with the aid of that applications requirement to have full-time work within 26 weeks with a view to qualify for the wage supplement payments. A titanic part of this increase concerned switching from section-time to full-time work and it was once now not comprised exclusively of switching from unemployment to full-time work.