Friday, 21 December 2012

Addressing the Problem of Stagnant Wages

an article by Frank Levy and Thomas Kochan (Sloan School, Massachusetts Institute of Technology) published in Comparative Economic Studies Volume 42 issue 4 (December 2012)


From the mid-1940s through the 1970s, median wages and productivity growth rose in tandem. Since the 1980s productivity continued to grow steadily while wages stagnated.

In this paper we document these trends, explore the reasons for these divergent trends, and outline a mix of policy, institutional, and organisational changes needed to restore wage growth and improved living standards for the American workforce.

JEL Classification: Jo8

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