The immediate answer to questions about Lee and Ohanian is that all the institutions they blame for high structural unemployment during the Great Depression were still there after World War II--yet no high structural unemployment then at all.
The hasty answer to Lee and Ohanian is that they are playing two jokers:
(1) They define "before Roosevelt" as the average of 1930-32 rather than as 1932.
(2) They assume that all of the declines in hours of work per week is due to deficient demand rather than to a much-desired increase in the bargaining power of workers who then choose to bargain for more leisure.
Wednesday, February 4, 2009
Great Depression and workforce...
Understanding the Great Depression Blogging: Labor Input and Its Trend
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