EJ2014 article.pdf (1.38 MB)
What can wages and employment tell us about the UK's productivity puzzle?
journal contribution
posted on 2023-06-10, 04:34 authored by Richard Blundell, Claire Crawford, Wenchao JinWenchao JinAs 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.
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Publication status
- Published
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- Published version
Journal
The Economic JournalISSN
0013-0133Publisher
Oxford University PressExternal DOI
Issue
576Volume
124Page range
377-407Department affiliated with
- Economics Publications
Full text available
- Yes
Peer reviewed?
- Yes
Legacy Posted Date
2022-09-02First Open Access (FOA) Date
2022-09-02First Compliant Deposit (FCD) Date
2022-09-02Usage metrics
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