Federal Reserve Bank of Kansas City
Why Is Wage Growth So Low?
Real wage growth has been low in recent years despite continued improvement in the labor market. I examine the interaction between productivity growth and unemployment and show that low productivity growth largely accounts for the current low wage growth. If productivity growth were to pick up, the current low unemployment rate would likely strengthen the positive relationship between productivity growth and wage growth.
Cite this item
Jun Nie, "Why Is Wage Growth So Low?"
, Federal Reserve Bank of Kansas City, Macro Bulletin, pages 1-4, number 00072, Dec 21 2018.
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
Keywords: Productivity growth; Unemployment
This item with handle RePEc:fip:fedkmb:00072
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