2min chapter

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Anna Stansbury on How to Boost Worker Bargaining Power

Odd Lots

CHAPTER

Is Tight Labour Markets a Sufficient Driver of Labour Market Power?

In the pre pandemic era, my senses, we didn't see a huge amount of a huge amounts of change there. In terms of the direct effect on things like wages, you did start to see the tilt of wage growth switch. When labor markets become tighter, typically that's disproportionately affecting lower income individuals who tend to have higher unemployment rates. Typically that's disproportionately infecting people from racial an ethic minorities. So you saw that effect directly happening already. The question i think you're asking is, is it also feeding into other secondary factors of labour market power? Something like tight labour markets enable more worker activism and more unions,. because are less worried about retaliation or losing their jobs.

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