Baumol's Cost Disease ·
Why a Haircut Keeps Getting Pricier
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.com · Baumol & Bowen (1966) · productivity gap → rising wage → rising price
Year
1966
Wage
$10/hr
Haircut
$10
Step
—
Progressive sector — chip factory
Stagnant sector — the barber
Economy-wide wage
Price of the haircut
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