The Federal Reserve in San Francisco has looked into the question of why wage growth is so slow.
I have not read the full letter but I think sharing the beginning with you is very important. here it is: FRBSF Economic Letter 2015-01 January 5, 2015 Why Is Wage Growth So Slow? Mary C. Daly and Bart Hobijn Despite considerable improvement in the labor market, growth in wages continues to be disappointing. One reason is that many firms were unable to reduce wages during the recession, and they must now work off a stockpile of pent-up wage cuts. This pattern is evident nationwide and explains the variation in wage growth across industries. Industries that were least able to cut wages during the downturn and therefore accrued the most pent-up cuts have experienced relatively slower wage growth during the recovery. Read full article IT IS THOSE PENT-UP WAGE CUTS !!!!!! _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
