We study earnings mobility and instability using data from the Panel Study of Income Dynamics. Our main contribution is to update mobility and instability calculations to include data from the 1990s, although we also provide a number of tests of robustness across mobility and instability...

We investigate the impact of rising educational attainment on wage inflation and the equilibrium (non-inflationary) rate of unemployment. Rising educational attainment may reduce wage pressures by shifting the composition of the labor force towards groups with lower equilibrium unemployment...

Using Current Population Survey data, we find that the gap between wages by black and white males declined during the 1990s at a rate of 0.59 percentage point per year. The reduction in occupational crowding appears to be most important in explaining this trend. Recent wage convergence was most...

After the Great Recession, the fraction of U.S. workers whose wages were frozen reached a record high. Many employers would have preferred to cut wages, but couldn’t do so because of the reluctance of workers to accept reduced compensation. These pent-up wage cuts initially propped up wage...

Using data from the Current Population Survey from 1980 through 2010 we examine what drives variation and cyclicality in the growth rate of real wages over time. We employ a novel decomposition technique that allows us to divide the time series for median weekly earnings growth into the part...

Using Current Population Survey data, we find that the gap between wages by black and white males declined during the 1990s at a rate of 0.59 percentage point per year. The reduction in occupational crowding appears to be most important in explaining this trend. Recent wage convergence was most...

We show that the existence of downward nominal wage rigidities bends the short-run wage Phillips curve. We introduce a model of monetary policy with downward nominal wage rigidities and show that both the slope and curvature of the Phillips curve depend on the level of inflation and the extent...