I meant to provide a link, but see that it did not come through. Here is the link to the Fed bank's letter.
http://www.frbsf.org/economic-research/publications/economic-letter/2015/january/unemployment-wages-labor-market-recession/?utm_source=mailchimp&utm_medium=email&utm_campaign=economic-letter-2015-01-05 That will provide their approach. To paraphase, in previous recessions wages fell, in the current one, wages didn't fall commensurately, so there were "pent-up wage cuts" yet to be made. Made sense to them -- but not to me. Gene On Jan 5, 2015, at 2:13 PM, Robert Naiman <[email protected]> wrote: > what? > > can anyone explain this, from their point of view? what is the logic, from > their point of view? > > > > Robert Naiman > Policy Director > Just Foreign Policy > www.justforeignpolicy.org > [email protected] > (202) 448-2898 x1 > > On Mon, Jan 5, 2015 at 2:10 PM, Eugene Coyle <[email protected]> wrote: > 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 > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
