For an analysis that raises the possibility that some of these shifts reflect better job matches, see Raven Molloy, Christopher L. Smith, and Abigail K. Wozniak (2014), “Declining Migration within the U.S.: The Role of the Labor Market”, NBER Working Paper Series 20065 (Cambridge, Mass. : National Bureau of Economic Research, April).
Because such second-round effects might significantly add to inflationary pressures, this is a matter of particular concern for us. Second-round effects would materialise if consumers or firms tried to compensate their losses in purchasing power stemming from the increase in commodity prices by enforcing higher prices and wages. Such behaviour would lead to a dangerous wage-price or price-wage spiral.