Why is wage growth so slow?
Despite considerable improvement in the labor market, growth in wages continues to be disappointing. One reason is that many firms were unable to reduce wages during the recession, and they must now work off a stockpile of pent-up wage cuts. This pattern is evident nationwide and explains the variation in wage growth across industries. Industries that were least able to cut wages during the downturn and therefore accrued the most pent-up cuts have experienced relatively slower wage growth during the recovery.
Year of publication: |
2015
|
---|---|
Authors: | Daly, Mary Colleen ; Hobijn, Bart |
Published in: |
FRBSF Economic Letter. - Federal Reserve Bank of San Francisco. - 2015, 01
|
Publisher: |
Federal Reserve Bank of San Francisco |
Saved in:
freely available
Saved in favorites
Similar items by person
-
The outlook for U.S. labor-quality growth
Bosler, Canyon, (2016)
-
The outlook for US labor-quality growth
Bosler, Canyon, (2019)
-
The intensive and extensive margins of real wage adjustment
Daly, Mary C., (2016)
- More ...