More Slack than Meets the Eye? Recent Wage Dynamics in Advanced Economies

Author/Editor:

Gee Hee Hong ; Zsoka Koczan ; Weicheng Lian ; Malhar S Nabar

Publication Date:

March 9, 2018

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Nominal wage growth in most advanced economies remains markedly lower than it was before the Great Recession of 2008–09. This paper finds that the bulk of the wage slowdown is accounted for by labor market slack, inflation expectations, and trend productivity growth. In particular, there appears to be greater slack than meets the eye. Involuntary part-time employment appears to have weakened wage growth even in economies where headline unemployment rates are now at, or below, their averages in the years leading up to the recession.

Series:

Working Paper No. 18/50

Subject:

English

Publication Date:

March 9, 2018

ISBN/ISSN:

9781484345351/1018-5941

Stock No:

WPIEA2018050

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

44

Please address any questions about this title to publications@imf.org