What can wages and employment tell us about the UK's productivity puzzle?

Blundell, Richard, Crawford, Claire and Jin, Wenchao (2014) What can wages and employment tell us about the UK's productivity puzzle? The Economic Journal, 124 (576). pp. 377-407. ISSN 0013-0133

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Abstract

As in many European countries, labour productivity in the UK has been stagnant since the start of the Great Recession. This article uses individual data on employment and wages to try to understand whether real wage flexibility can help shed light on the UK's productivity puzzle. It finds, perhaps unsurprisingly, that workforce composition cannot explain the reduction in wages and hence productivity that we observe, even compared to previous recessions; instead, real wages have fallen significantly within jobs this time round. Why? One possibility we investigate is that the labour supply in the UK is higher compared to previous recessions.

Item Type: Article
Schools and Departments: University of Sussex Business School > Economics
Subjects: H Social Sciences > HB Economic theory. Demography > HB3711 Business cycles. Economic fluctuations > HB3722 Finance and cycles. Financial crises
H Social Sciences > HD Industries. Land use. Labour > HD4801 Labour. Work. Working class > HD4909 Wages
Depositing User: Wenchao Jin
Date Deposited: 02 Sep 2022 13:20
Last Modified: 02 Sep 2022 13:30
URI: http://sro.sussex.ac.uk/id/eprint/107670

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