In an interview with ProMarket, Glen Weyl, co-author of the wildly ambitious (and wildly controversial) new book Radical Markets: Uprooting Capitalism and Democracy for a Just Society, talks about antitrust, data as labor, and why he thinks the free market system is not actually free. “The entire business community has been speaking with one voice in the common interest of capital as a class,” he says.
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With solutions to the threats of digital monopolies currently looking unlikely to come from the state, law and economics scholars Eric Posner and Glen Weyl, authors of the forthcoming book Radical Markets, propose looking to the power of organized labor. A data workers’ (that is, social media users’) labor union, they argue, could help check the offenses of the digital platforms.
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Economists have for a decade or so theorized that moving productive inputs like labor and capital into the firms that make the best use of them is a prime engine of economic growth. But measuring how well this allocation is taking place across economies is a daunting empirical task. Nonetheless, a new Stigler Center working paper by Lenzu and Manaresi tries to do precisely that.
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New study finds that wages are significantly lower in concentrated labor markets—and even lower in labor markets where unionization rates are low.
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Changes in technology clearly affect people in different sectors and occupations differently, but providing adequate policy support to workers trying to adjust to these changes requires a better understanding of the level at which productivity growth is happening in the economy. Here, the researchers find that, in the United States, the vast majority of that growth has happened at the occupational and sector-occupational level.
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In recent decades, antitrust policy has all but ignored the issue of monopsony power. Yet a new paper shows that across the US economy, labor markets are highly concentrated and that this concentration is also correlated to lower wages, suggesting that employers are indeed exercising monopsony power and driving down pay.
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This week in political economy.
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Redirecting antitrust enforcement to confront monopsony power would be a substantial departure from the way it has been conducted in recent decades, but just because a policy has been in place for a long time does not mean it is a success, and recent evidence implies a significant policy change is necessary and justified.
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A new paper argues that the decline of the labor and capital shares, as well as the decline in low-skilled wages and other economic trends, have been aided by a significant increase in markups and market power.
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