ECON 2010 Chapter Notes - Chapter 6: Real Wages, Marginal Product, Diminishing Returns
Document Summary
How do globalization and technological; change affect wages and employment. In 1999, thomas l. friedman published the lexus and the olive tree. Friedman notes the conflicting pulls of modernization and traditional ways of life have created enormous social conflicts. Powerful forces of modernization have widened the gap between the haves those who can take advantage of rapid technological and economic change and the have-nots those who are unable or unwilling to do so. involving real wages. To understand labor markets at a macroeconomic level, it is helpful to keep in mind three important trends. Over the twentieth century, all industrial countries have enjoyed substantial growth in real wages. In the united states in 2010, the average worker"s yearly earnings could command twice as many goods and services as in 1960 and nearly five times as much as in 1929, prior to the great depression.
