Baumol effect
(en)
(aka Baumol's cost disease) rise of salaries in jobs that have experienced no increase of labor productivity, in response to rising salaries in other jobs that have experienced the labor productivity growth
O'Connor mounting pressure on state finances by public-sector trade unions claiming the same wages and benefits as workers in private industry and thereby exposing the state to the ‘cost disease’ of the service sector
referring to Marxist theorist James O'Connor. cites William J Baumol's "Macroeconomics of Unbalanced Growth" here
notable
9 years, 1 month ago