Real Wages and Unemployment in the Big Squeeze

P Gregg; Stephen Machin; M Fernandez Salgado

doi:10.1111/ecoj.12139

Real Wages and Unemployment in the Big Squeeze

P Gregg, Stephen Machin, M Fernandez Salgado

University College London

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Abstract

UK real wage growth has slowed down, stagnated and recently turned sharply negative. We document the nature of real wage changes across the wage distribution over the last three decades, showing that recent patterns represent a distinct break of trend that pre-dates the onset of recession. We explore whether unemployment has become a stronger moderating influence on real wage growth and report, using aggregate economy-wide and regional panel data, that real wage–unemployment sensitivities have become stronger in the period from 2003 onwards. Finally, we offer some assessment of possible drivers of this increased sensitivity of real wages to unemployment.

Original language	English
Pages (from-to)	408-432
Number of pages	25
Journal	The Economic journal
Volume	124
Issue number	576
DOIs	https://doi.org/10.1111/ecoj.12139
Publication status	Published - 1 May 2014

Keywords

Real wages
Price inflation
Unemployment

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/ecoj.12139

Accepted version
his is a pre-copyedited, author-produced version of an article accepted for publication in The Economic Journal following peer review. The version of record Paul Gregg, Stephen Machin, Mariña Fernández‐Salgado, Real Wages and Unemployment in the Big Squeeze, The Economic Journal, Volume 124, Issue 576, 1 May 2014, Pages 408–432] is available online at: https://doi.org/10.1111/ecoj.12139
Accepted author manuscript, 224 KB
data_documentation ej2014
his is a pre-copyedited, author-produced version of an article accepted for publication in The Economic Journal following peer review. The version of record Paul Gregg, Stephen Machin, Mariña Fernández‐Salgado, Real Wages and Unemployment in the Big Squeeze, The Economic Journal, Volume 124, Issue 576, 1 May 2014, Pages 408–432] is available online at: https://doi.org/10.1111/ecoj.12139
Accepted author manuscript, 11.6 KB

Cite this

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Real Wages and Unemployment in the Big Squeeze

Abstract

Keywords

UN SDGs

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