Real Wage Index Numbers
American Economic Review · 2011 · Volume 101 · Issue 3
Abstract
Real wage index numbers have been used to measure movements in the standard of living of the typical worker. This paper describes some of these indicators for the United States and England. A new real wage index is proposed that resembles the sliding scale used to adjust wages in certain industries years ago. This new index is applied to US manufacturing industry and it implies a fall in real wages by about 40 percent since 1960. Workers' distributional position in US manufacturing has deteriorated considerably.
Keywords
Index Numbers and Aggregation, leading indicators, Employment, Unemployment, Wages, Intergenerational Income Distribution, Aggregate Human Capital, Wage Level and Structure, Wage Differentials, Industry Studies: Manufacturing: General
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