Monday, January 04, 2016

Underemployment

I'm seeing a headline asking "Why are twentysomethings retiring?" I'm guessing the answer is that they're rich but they're sick of working. Sounds like a get-rich-quick scheme that I should know about. Let's go see.

Oops, no. That's kind of a teaser headline. The real issue is why are so many people declining to work despite being in their prime working years:

"The labor-force participation rate is still below estimates of its demographic trend, involuntary part-time employment remains somewhat elevated, and wage growth has yet to show a sustained pickup."

That quote is from Janet Yellen.

Well, I don't know in particular, but in principle, if you reward work less you will get less work. It's the great lesson of socialism and welfare states everywhere.

The fear of starvation
is stark motivation.

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