MW Lecture with Professor Jan Eeckhout, October 2022

The Profit Paradox
Since 1980, the world economy has been undergoing a fundamental transformation. Profits and stock valuations of dominant firms are growing faster than ever, seemingly a sign of economic growth and progress. At the same time, we see that wages for production and service workers are stagnating, that labor dynamism and labor participation are falling, and that the number of startup companies is decreasing. The Profit Paradox asks what is going on in the global economy.