Nominal Wage Rigidities and the Future Path of Wage Growth
Abstract: Wage growth has been modest since the end of the Great Recession, puzzling many market observers and policymakers. Article examines the relationship between wage growth and nominal wage rigidities?the share of workers whose wages have not changed?and find the current pace of wage growth is not historically unusual. The results suggest wage growth may continue on its gradual path as long as the incidence of wage rigidities remains elevated.
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Description: Full text
Provider: Federal Reserve Bank of Kansas City
Part of Series: Macro Bulletin
Publication Date: 2018-05-10