Weaker US productivity performance since the financial crisis is contributing to lower wage growth, an International Monetary Fund article says. Over the last decade, annual wage growth has hovered around 2%, down from 3.5% between 2000 and 2007. Workers’ income has failed to increase more strongly even as the unemployment rate has fallen to 4% in June 2018.
In An Answer to the US Wage Puzzle, published on July 10, senior IMF economist Yasser Abdih says two factors are behind this development:
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