Solving the Puzzle of Stagnant Wages

Wall Street Journal ^ | January 25, 2014 | Edward P. Lazear

[C19fan]

The elation over wage increases in private business reported in last month’s job report has been replaced by disappointment. The Bureau of Labor Statistics reported on Jan. 16 that average hourly earnings fell five cents in December, eating up most of the six-cent increase in November. Between 2010 and 2014, the average real wage fell 1.1%, a poor showing after rising 3.4% between 2006 and 2010. What accounts for this performance?

There are basically two ways that the average economywide wage can fall. There might be a shift in employment away from high-paying to lower-paying industries; in other words, the economy is producing more “bad jobs.” The other way is that the overall composition of work might be the same, but wages for the typical job in most sectors have fallen.

[C19fan]

This is the WSJ so not allowed to mention the role de facto open borders play in driving down wages.

[Uncle Miltie]

The WSJ ignores the increased supply of (illegal) labor as a cause of reduced prices for labor.

The WSJ are knowingly complicit in the destruction of the middle class for the Oligarchy.

I say this as an acolyte of Milton Friedman.

[free_life]

Robots,and AI will replace us in all our jobs anyways. Then the govt can look after all of us.

[glasseye]

Bingo!

Increase supply, price goes down.

Borders, language and culture be damned.

[Redbob]

"This is the WSJ so not allowed to mention the role de facto open borders play in driving down wages."

At both ends of the wage spectrum, with wetbacks taking entry-level jobs from our kids, and H1-Bs depressing wage scales for the high-paying jobs of our educated STEM-graduates and professionals.

[Buckeye McFrog]

78% surveyed respond “use the Big Stick of Gubbermint to squeeze it out of corporations and my GRRRREEEEEEDY S.O.B. boss!”

This country is SO SCROOOOOOD!

[stephenjohnbanker]

” The WSJ ignores the increased supply of (illegal) labor as a cause of reduced prices for labor.

The WSJ are knowingly complicit in the destruction of the middle class for the Oligarchy.”

All one needs to know.

[minnesota_bound]

Along with obamacare and 29/hr work weeks.