Saturday, October 5, 2013

an economist looks at the Meany job market bifurcation

"Franco M' constructed a  macro model with  2 different equations for wages
. One union & one non union.

The union was vertical Phiilips curve:
price increases :
 union workers got full compensation
 Non-union didn't get full compensation
and  took the real loss from the price of an import price rise
. In fact  more than took the shock because unions caused more inflation
 --- ie core inflation--
that the non unions didn't get compensated for"