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Monopsony makes firms not only small but also unproductive

Differences in labour market outcomes between East and West Germany persist, 30 years after reunification. Using high-quality administrative data from Germany, this column documents that East German plants face a steeper size–wage curve than West German ones, invest less in marketing, remain smaller, and, on average, pay lower wages. A model with labour market monopsony, ....

West German , East Germany , East Germans , West Germany , Arbeitsmarkt Forschung , Journal For Labour Market Research , Mimeo Columbia University , German Structure Of Earnings Survey , Labor Market Flow Panel , German Structure , Earnings Survey , Administrative Wage , Why East Germany , Labor Reallocation , Wage Growth , Mimeo Columbia , Distributional Effects , Wage Structure , Labor Economics , Arbeitsmarkt Forschung Journal , Labour Market Research , Regional Price Differentials , Spatial Economic Analysis , Development Economics ,

AI - wealth generator for some, systemic inequality enforcer for others?

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Summary:
While AI may offer the “biggest wealth opportunity of our lifetime”, the big question is will that wealth be limited to the technically-savvy and well-educated?
(PIxabay)
Rising levels of systemic inequality are becoming an “insidious side-effect of our increasingly AI-powered society” due to changes in the nature of work, according to a recent article in the Harvard Business Review (HBR).
The piece entitled ‘
Algorithms are making economic inequality worse’ puts forward a number of key arguments to make its case. It posits that a new digital divide is widening the career, and therefore the wage, gap between workers who have access to higher education, leadership mentoring and job experience, and those who don’t. ....

United States , University Of Redlands , Tom Cheesewright , Johannes Moenius , Katya Almasque , Institute For Spatial Economic Analysis , Harvard Business Review , General Partner , Openocean United Kingdom , Applied Futurist Tom Cheesewright , Spatial Economic Analysis , Machines Learning , Ethics Future Of Work , ஒன்றுபட்டது மாநிலங்களில் , பல்கலைக்கழகம் ஆஃப் ரெட்லேண்ட்ஸ் , நிறுவனம் க்கு இடஞ்சார்ந்த பொருளாதார பகுப்பாய்வு , ஹார்வர்ட் வணிக விமர்சனம் , ஜநரல் கூட்டாளர் , இடஞ்சார்ந்த பொருளாதார பகுப்பாய்வு , இயந்திரங்கள் கற்றல் , நெறிமுறைகள் எதிர்கால ஆஃப் வேலை ,