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But this unease is unwarranted. For example, in the case of monopsony power in low-wage labor markets, legislated minimum wage increases can potentially move wages closer to efficient levels and increase employment. But this brief surge soon failed and productivity continued growing much more slowly than in previous periods—when policy had consciously supported the leverage of typical workers.

In short, the policy movement to disempower workers not only led to less equal growth, but was also associated with significantly slower growth. When we assert that most of the policy change that led to inequality and slower growth was focused on disempowering workers —and that policy going forward needs to work to reempower workers—we certainly do not mean to imply one should ignore potential policy opportunities that could erode employer power e.

But the larger opportunities are likely those that lead to more labor market balance in the power between employers and workers by increasing worker power —not trying to move the labor market toward a competitive ideal that is not attainable. It is true that in the real world distributional conflicts are more complicated than a contest between two parties, but tug-of-war can be multipolar as well, as highlighted in Wells Covert and Weissman are examples of extremely savvy economic journalists who have made large claims about the potential of market concentration to explain long-run wage trends.

An obvious corollary is that no new institutions or standards that provided such leverage and bargaining power were put in place to replace those that were lost. Production and nonsupervisory labor account for roughly 80 percent of the private-sector workforce. Markets—whether product or labor markets—can be concentrated even when there is more than one buyer or seller. See Bivens, Mishel, and Schmitt We should note that the finding that concentration alone cannot explain large wage trends in recent decades is not a criticism of this literature.

The papers themselves generally make no such claim and the authors tend to emphasize a broad portfolio of shifts in market power that have affected wages. However, commentary and analysis of these papers often do make these claims, both implicitly and explicitly.

Trade unions, collective bargaining, and the labor market

It is also worth noting that not all of the rigorous papers in the recent literature find increasing concentration in labor markets. For example, Rinz finds that industrial concentration at the national level was roughly the same in as in , while concentration at the local level was generally declining over that period. See Bivens and Mishel for these decompositions. Declining labor share explains The erosion of unions harms the wage growth of nonunion workers by depriving this latter group of wage standards set by unionized firms in industries and geographies where unions are strong.

See a Problem?

See McNicholas, Sanders, and Shierholz for an explanation of how employment practices make jobs unfair to workers from the first day of work and how policy changes can remedy this. These protections included expansions of American intellectual property protections to other countries and new legal forums for multinational corporations to contest regulatory actions that could reduce their profits. See Bivens a and Rodrik for further discussion of how trade agreements have become a vehicle for corporate rent-seeking.

It goes without saying that this earlier postwar period between and also saw many terrible inequalities—in particular along dimensions of race and gender. But we should not ignore the clear evidence that more progressive class-focused policies in the earlier period worked as intended , often by explicitly seeking to remedy imbalances in labor market power between employers and employees.

The effects of market structure and bargaining position on hospital prices.

It should also be noted that these class-based policies provided disproportionate aid to workers of color. For example, median income growth for black families between and was significantly faster than for white families 2. Some of that relative gain was likely driven by political mobilization to remedy race-based discrimination in society at large and the labor market in particular, but a significant portion of this gain can be explained by the fact that policies aiming to boost wages and incomes for the bottom 90 percent of the population will, all else equal, always provide disproportionate benefit to nonwhite workers, who make up a disproportionate share of this bottom 90 percent.

Between and , net productivity grew half as fast as it had from to Alchian, Armen A. Bivens, Josh.

Economic Policy Institute, July Economic Policy Institute, August Economic Policy Institute, June Bivens, Josh, and Lawrence Mishel. Economic Policy Institute, September Economic Policy Institute, April Bronfenbrenner, Kate. Economic Policy Institute, May Congressional Budget Office. The Distribution of Household Income, Cooper, David. Covert, Bryce. Policy Agenda. December Hart, Oliver. Manning, Alan.

Princeton, N. Naidu, Suresh, and Noam Yuchtman.

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University Press Scholarship Online. Sign in. Not registered? Sign up. Publications Pages Publications Pages. Search my Subject Specializations: Select Users without a subscription are not able to see the full content. Find in Worldcat. Print Save Cite Email Share. Compared to the cost of goods back home, the prices don't seem so high. Unfortunately, this often has the effect of driving the price up for other foreigners though, as it creates an expectation that they will pay the hugely inflated prices.

Tips for Bargaining at Markets in India

Here's the best way go about haggling and bargaining at India's markets, so you don't pay too much. Delhi is renowned for its markets. In Kolkata, head to New Market , an historic bargain shoppers paradise. Mumbai also has some interesting markets , including the Chor Bazaar Thieves Market.

Tripsavvy uses cookies to provide you with a great user experience. By using Tripsavvy, you accept our. Share Pin Email. Firstly, to get a feel for how much goods should cost, visit some fixed price stores first.

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  6. You'll find handicraft emporiums in major Indian cities. If you see something you like at a market, don't immediately buy it from the first stall you come across. There will be plenty more vendors selling the same thing and they may even have a better variety for a cheaper price. Walk around the market and check out all that's on offer first. As a general rule, don't pay any more than half the initial asking price of any item.

    Sometimes it's possible to pay less, especially if you buy more than one item. Shopkeepers consider the first sale of the day to be lucky, so shop early and they may give you a better price to get your business. Never reveal how much you're interested in an item.