Why Do Wages Rise?

Many people believe the only path to higher wages is to put in more work hours, but there are actually many economic factors that go into deciding the number on each worker’s paycheck. Watch this short video to learn more!

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One Comment

  1. David Foster
    Posted October 3, 2018 at 7:07 pm | Permalink

    To simplify: the key factors are *productivity* on one hand, and *supply/demand* on the other. Employers *cannot* raise wages unless the productivity is there to support it. and they generally *will not* raise wages unless they have to–that factor being based on the availability of other alternatives for prospective employees. These factors are interrelated: the US has historically focused on labor-saving technologies because of relatively high wages–the availability of large amounts of farmable land having created an alternative for employees throughout much of our history.

    I have a related post & discussion, keying off of the Amazon $15/hour decision, at Chicago Boyz:


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