Wage Growth

Version	Summary	Created by	Modification	Content Size	Created at	Operation
1	handwiki	Vivi Li	--	1986	2022-11-17 01:37:16

The content is sourced from: https://handwiki.org/wiki/Finance:Wage_Growth

Wage growth (real wage growth) is a rise of wage adjusted for inflations, often expressed in percentage. In macroeconomics, wage growth is one of the main indications to measure economic growth for a long-term since it reflects the consumer's purchasing power in the economy as well as the level of living standards. An increase in wage growth implies price inflation in the economy while a low wage growth indicates deflation that needs artificial interferences such as through fiscal policies by federal/state government. Minimum wage law is often introduced to increase wage growth by stimulating price inflations from corresponding purchasing powers in the economy. Wage growth can also be maximised through the development of industry factors by investing skilled workers in which decision made by businesses. More financial compensation for skilled workers not only lifts wage growth but stimulates higher market prices in the economy. While a weak productivity influences a low wage growth, identified a long-term factor, a short-term problem for low wage growth is often identified as the spare capacity in the labour market. By the lower unemployment rate given by the more opportunities from the spare capacity in the labour market creates less competitiveness amongst the labours, which reduces wage growth. In order to achieve consistent strong wage growth and sustainable economic growth, high productivity is the key determinant. Higher labour productivity (measured by GDP per worker) stimulates price inflations in resulting in a rise in real wage growth. One of the major factors for the recent sluggish wage growth in advanced countries is caused by their lower labour productivities.

sustainable economic real wage unemployment rate

References

"Labour productivity levels in the total economy". https://stats.oecd.org/Index.aspx?DataSetCode=LEVEL#.
Allen, Robert C. (2016), "Real Wage Rates (Historical Trends)" (in en), The New Palgrave Dictionary of Economics (Palgrave Macmillan UK): pp. 1–7, doi:10.1057/978-1-349-95121-5_2168-1, ISBN 9781349951215, https://doi.org/10.1057/978-1-349-95121-5_2168-1, retrieved 2019-05-06
(in en) Global Wage Report 2018/19: What lies behind gender pay gaps. 2018-11-26. http://www.ilo.org/global/publications/books/WCMS_650553/lang--en/index.htm.
The Treasury (2017). "Analysis of wage growth". https://treasury.gov.au/sites/default/files/2019-03/p2017-t237966.pdf.
Bulman, Simon, Tim, John (2003). "PRODUCTIVITY AND INFLATION". https://www.rba.gov.au/publications/rdp/2003/pdf/rdp2003-10.pdf.
"What's Up with U.S. Wage Growth and Job Mobility?" (in en). https://www.imf.org/en/Publications/WP/Issues/2016/12/31/What-s-Up-with-U-S-44032.
Ivailo Arsov, Richard Evans. "Wage Growth in Advanced Economies". https://www.rba.gov.au/publications/bulletin/2018/mar/pdf/wage-growth-in-advanced-economies.pdf.
The Federal Reserve Bank of Chicago (2017). "When it comes to wage growth, the measure matters". Chicago Fed Letter 387: 1.
Statistics, c=AU; o=Commonwealth of Australia; ou=Australian Bureau of (2019-05-15). "Main Features - Main Features" (in en). https://www.abs.gov.au/ausstats/abs@.nsf/Latestproducts/6345.0Main%20Features1Mar%202019?opendocument&tabname=Summary&prodno=6345.0&issue=Mar%202019&num=&view=.
West, Jeremy; Meer, Jonathan (2016-03-31). "Effects of the Minimum Wage on Employment Dynamics" (in en). Journal of Human Resources 51 (2): 500–522. doi:10.3368/jhr.51.2.0414-6298R1. ISSN 0022-166X. http://jhr.uwpress.org/content/51/2/500.
"LMSB SA AWE total pay WE growth yr on yr 3 months average - Office for National Statistics". https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/timeseries/kac3/lms.
Asia News Monitor (2018). United Kingdom: Eighth month of UK wage growth with disabled employment at record high. Bangkok.
"Rich-world wage growth continues to disappoint". The Economist. 2018-09-11. ISSN 0013-0613. https://www.economist.com/graphic-detail/2018/09/11/rich-world-wage-growth-continues-to-disappoint.
Organisation for Economic Cooperation and Development. OECD Economic Outlook (2017). "Developments in individual OECD and selected non-member economies: United Kingdom". https://search-proquest-com.ezproxy1.library.usyd.edu.au/docview/1972153191?rfr_id=info%3Axri%2Fsid%3Aprimo.
Elliott, Larry (2018-10-16). "UK pay growth rises to 3.1%, the highest in almost a decade" (in en-GB). The Guardian. ISSN 0261-3077. https://www.theguardian.com/business/2018/oct/16/uk-pay-growth-unemployment.
"Low and high pay in the UK - Office for National Statistics". https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/lowandhighpayuk/2018.
"Gross Domestic Income". https://www.bea.gov/data/income-saving/gross-domestic-income.
Casselman, Ben (2019-05-02). "Why Wages Are Finally Rising, 10 Years After the Recession" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2019/05/02/business/economy/wage-growth-economy.html.
Lavoie M, Stockhammer, E (2013). Wage-led Growth : An equitable strategy for economic recovery. International Labour Office.
Casselman, Ben (2019-05-02). "Why Wages Are Finally Rising, 10 Years After the Recession" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2019/05/02/business/economy/wage-growth-economy.html.
"Where Is the Wage Growth?" (in en). https://money.usnews.com/careers/salaries-and-benefits/articles/where-is-the-wage-growth.
"Wage growth for low-wage workers has been strongest in states with minimum wage increases" (in en-US). https://www.epi.org/publication/wage-growth-for-low-wage-workers-has-been-strongest-in-states-with-minimum-wage-increases/.
NW, 1615 L. St; Suite 800Washington; Inquiries, DC 20036USA202-419-4300 | Main202-857-8562 | Fax202-419-4372 | Media. "For most Americans, real wages have barely budged for decades" (in en-US). https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us-workers-real-wages-have-barely-budged-for-decades/.
Weinstein A (2016). Working women in the city and urban wage growth in the United States. University of Akron: University of Akron.

©Text is available under the terms and conditions of the Creative Commons-Attribution ShareAlike (CC BY-SA) license; additional terms may apply. By using this site, you agree to the Terms and Conditions and Privacy Policy.

Upload a video for this entry

Information

Subjects: Economics

Contributor MDPI registered users' name will be linked to their SciProfiles pages. To register with us, please refer to https://encyclopedia.pub/register :

HandWiki

View Times: 4.3K

Entry Collection: HandWiki

Update Date: 17 Nov 2022

Table of Contents

Video Upload Options

References