Paul Krugman points out constantly that if the unemployment problem was structural, we'd see wages rising in areas where there is demand,...
A testable prediction of (one version of) structuralist theories [1].
...for those above [400k] they've increased 23% since 2008.
It looks like reality fits the structuralist predictions - wages are rising for some people, and falling for others.
[1] Not all structuralist theories predict this, however. Krugman's version of structuralist theories is based on assumptions of interchangeability of labor, no delays in price adjustment (i.e., no sticky wages or sticky prices), and several more. It's strange how Krugman believes in sticky prices/wages when pushing Keynesian theories, but believes them to be false when bashing structuralist theories.
Paul Krugman points out constantly that if the unemployment problem was structural, we'd see wages rising in areas where there is demand,...
A testable prediction of (one version of) structuralist theories [1].
...for those above [400k] they've increased 23% since 2008.
It looks like reality fits the structuralist predictions - wages are rising for some people, and falling for others.
[1] Not all structuralist theories predict this, however. Krugman's version of structuralist theories is based on assumptions of interchangeability of labor, no delays in price adjustment (i.e., no sticky wages or sticky prices), and several more. It's strange how Krugman believes in sticky prices/wages when pushing Keynesian theories, but believes them to be false when bashing structuralist theories.