Do rising labor costs trigger higher inflation?
The evidence that developments in compensation growth lead overall CPI inflation has thus far been inconclusive. This study, however, sheds new light on the relationship between labor costs and price inflation. By breaking down compensation and prices into their various components, the author finds that compensation growth in the service-producing segment of the private sector can help predict prices for a specific group of services.
New York City's unemployment picture
This issue of Second District Highlights briefly examines several explanations that have been offered for the rise in unemployment in New York City from 1994 to 1997.
A historical perspective on the 1989-92 slow growth period
This article compares the 1990-91 recession and the surrounding period of unusually sluggish growth with earlier recessionary episodes. Using a variety of indicators, the author assesses the relative severity of the latest recession and identifies features that distinguish this period from its predecessors. He also gauges the economy's recent performance by tracking the deviation of real GDP from various estimates of its potential level.
The effect of imports on U.S. manufacturing wages
U.S. imports of manufactured goods increased rapidly between 1975 and 1985. During the same period, real wages of U.S. manufacturing workers stagnated. The author investigates whether the increased competition from imports affected earnings within industries and contributed to the sluggish growth of aggregate manufacturing wages.
In brief: economic capsules: an overview of inflation measurement
This article surveys a variety of indexes used to measure inflation. The authors identify differences in the construction and coverage of these measures and touch on some of the issues affecting the measurement of prices for a broad range of goods and services.
The changing U.S. income distribution: facts, explanations, and unresolved issues
This paper explores the increase in income inequality since the late 1970s, with emphasis on wage inequality. The growth in wage inequality for men and women separately is documented and updated. Changes resulting from a rising education and experience premium are distinguished from those attributable to widening within-group inequality. These findings are then placed in the context of the existing literature on explanations for widening inequality.