Weak US productivity behind low wage growth – IMF
Declining labour share of income is another contributing factor
Weaker US productivity performance since the financial crisis is contributing to lower wage growth, an International Monetary Fund article says. Over the last decade, annual wage growth has hovered around 2%, down from 3.5% between 2000 and 2007. Workers’ income has failed to increase more strongly even as the unemployment rate has fallen to 4% in June 2018.
In An Answer to the US Wage Puzzle, published on July 10, senior IMF economist Yasser Abdih says two factors are behind this development
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com
More on Economics
US rate hikes ‘lock in’ homeowners – Fed study
Tighter monetary policy raises house prices and reduces churn, research finds
San Francisco Fed paper details declining immigration into US
Statistics show decline after White House’s June proclamation barring entry across southern border
Time series and semi-structural models widely applied
High income countries more likely to use AI than peers from other income levels
Savings, not debt, can finance EU growth – Villeroy de Galhau
Governments need “strategic pivot” to meet structural challenges, says BdF governor
Economic growth and inflation remain most forecast indicators
But year-on-year data show rising priority for exchange rates
As a population ages, impact of deflation worsens – BoJ study
Research says falling prices inflict greatest harm on young people
Policy analysis takes most of PhD economists’ time
Other tasks consume just a quarter of their official hours
Rate hikes affect manufacturing economies more – Fed study
Authors find similar effects across eurozone and in US at county level