Betsey Stevenson, professor of public policy and economics, recently talked to Al Jazeera about the Great Resignation – the phenomenon of millions of Americans voluntarily leaving their jobs. She explained what's going on behind the data.
“Looking for a higher-paid job has always been the case when workers change jobs,” she said. “If you look over many decades, wage growth doesn’t usually occur because your boss gives you a big raise. It usually occurs because somebody gives you an outside job offer.”
These transitions have resulted in a labor force shortage that affects other economic measures, like inflation. Stevenson discussed the connection on NPR Marketplace.
"That’s where the sort of fear of future price increases are is in the service sector where we haven’t seen them. I’m pretty sure we’re gonna finally get more dishwashers and cars out there," she said. "We are going to solve this sort of the pressures that are causing inflation in the goods-producing sector. But that service sector inflation, it’s looming."
Read and hear the pieces featuring Stevenson:
- The Great Upgrade: Making the most of The Great Resignation, Al Jazeera, January 31, 2022
What you need to know now about inflation, NPR Marketplace, February 1, 2022