‘Compositional’ drag on wages set to fade, BoE article finds

Bank of England
The Bank of England

The drag on wages from factors related to the composition of the UK labour market seems to be fading, according to research published on March 11 by the Bank of England (BoE)

The article, part of the BoE’s quarterly bulletin, breaks the labour market down by the factors that could put upward or downward pressure on wages – including occupation, age, education, tenure and whether the job is industrial. Based on this breakdown, authors Will Abel, Rebecca Burnham and Matthew Corder find a large

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