Economic policy reports, blog postings, and media stories of interest:
A new policy brief from the N.C. Budget & Tax Center tracks wage trends in North Carolina.
In addition to the declining trend in income, it is also important to look at the hourly wage of workers. Wage growth is clearly linked to a household’s standard of living and consumption and thus the strength of economic recovery. Growth in wages is driven by a tight labor market where, in order to keep workers, employers must raise wages. In a period of weakness, like today’s labor market, workers and job seekers have less ability to negotiate for higher wages given the scarcity of employment opportunities. At the national level, there are currently five job seekers for every job opening.
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The median hourly wage of workers in North Carolina in 2009 was $14.95, just 60 cents higher than in 2000 when the median wage was $14.35.
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The wage growth that occurred in the 2000s in North Carolina largely benefited those at the upper end of the income distribution. In contrast, wage growth in the during the expansion of the 1990s was more broadly shared.
In an interview on The PBS NewsHour, Christina Romer, the outgoing chair of the Council of Economic Advisers, discussed the state of the economy and the effects of the American Recovery and Reinvestment Act. Romer’s remarks also demonstrate the political and ideological complexities that are preventing responses to current problems.
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Economic policy reports, blog postings, and media stories of interest:
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