Baumol effect
A theorem stating that there is a tendency for wages in jobs that have experienced…A theorem stating that there is a tendency for wages in jobs that have experienced little or no increase in labor productivity to rise in response to rising wages in other jobs that did experience high productivity growth.
Meaning
1 sensesA theorem stating that there is a tendency for wages in jobs that have experienced little or no increase in labor productivity to rise in response to rising wages in other jobs that did experience high productivity growth.
Origin
Introduced by William J. Baumol.Introduced by William J. Baumol.
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