The Hot Waitress Index

One funny economist has developed the so- called Hot Waitress Index, under the theory that attractive people land great jobs in sales when there are jobs in sales. However, when the economy contracts, these people trade down to waiting tables.

Usually when the economy turns sour, restaurants start reducing the numbers of workers. They slowly let the boys go, then the less attractive girls and then these hot girls appeared out of nowhere.

Hot people will migrate back to better jobs sooner than not-so-hot workers. Therefore, when you see the hot waitress go, it is time to feel good, not bad because it suggests that the economy is probably rebounding.

Read the full article...

Another economic indicator: Men's underwear

Economists don't believe in soulmates

"Economists see markets at play everywhere. Even in your romantic life. Indeed, I’m one of the worst guests that you can invite to your wedding. Why? Because while most of your guests are listening for your love story, I’m listening for your contract. While others see a romantic courtship leading to the altar, I see people who are satisfied enough to stop searching for someone else.

Searching for a spouse is very similar to searching for a job. There is not one perfect job for each of us, but there are clearly better and worse jobs. So we hunt, for a spouse and a job. When do we stop? When the offer in the hand is better than the likely offer in the bush.

At a wedding I see a relationship that is good enough to settle down and start investing in. If you get a reasonable rate of return, investment in your relationship will make it truly better than any other relationship you could have.

As an economist I think that a good marriage, like a good employment relationship, emphasizes shared vision, common interests, complementary abilities, and gains from specialization..."

Read the full article...