Sunday, February 21, 2010

Keeping the Plates Spinning

A very interesting article that mentions the hardships of jobs in the economic crisis. A woman works much longer hours as a journalist, nearly constantly thinking about work, to the point where it consumes her life. She asks at the end whether when the economy recovers will they hire more labor? She argues that perhaps not since she can do it herself. Like discussed in class, the MPL would be zero if they higher more labor, since she is able to the work herself, adding more people would simply put less pressure on her, not actually add any efficiency to the market. Based on that (an MPL=0) this may be a new shift in journalism, and perhaps other industries as well!

1 comment:

Mishaal said...

This is very true. Sometimes people think that when the economy is doing better, firms will hire. However the marginal product of labor would be zero since the extra worker does not add any productivity, unless both workers work fewer hours.