The Great Increase in Relative Volatility of Real Wages in the United States

@inproceedings{Champagne2010TheGI,
  title={The Great Increase in Relative Volatility of Real Wages in the United States},
  author={Julien Champagne and Andr{\'e} Kurmann},
  year={2010}
}
This paper documents that over the past 25 years, aggregate hourly real wages in the United States have become substantially more volatile relative to output. We use micro-data from the Current Population Survey (CPS) to show that this increase in relative volatility is predominantly due to increases in the relative volatility of hourly wages across different groups of workers. Compositional changes, by contrast, account for at most 12% of the increase in relative wage volatility. Using a… CONTINUE READING

Citations

Publications citing this paper.
SHOWING 1-10 OF 11 CITATIONS

Inequality and Optimal Monetary Policy

VIEW 9 EXCERPTS
CITES RESULTS, METHODS & BACKGROUND
HIGHLY INFLUENCED

Segmented labor markets and monetary policy

VIEW 5 EXCERPTS
CITES METHODS, BACKGROUND & RESULTS
HIGHLY INFLUENCED

References

Publications referenced by this paper.
SHOWING 1-10 OF 49 REFERENCES

Performance Pay, Wage Flexibility, and Hours of Work." Working paper

Lemieux, Thomas, W.Bentley MacLeod, Daniel Parent
  • 2009
VIEW 12 EXCERPTS
HIGHLY INFLUENTIAL

“The Long and Large Decline in U.S

Blanchard, Olivier, John Simon
  • Output Volatility.”Brookings Papers on Economic Activity,
  • 2001
VIEW 3 EXCERPTS
HIGHLY INFLUENTIAL

Reconciling the di¤erences in U.S. aggregate wage series.

Champagne, Julien, André Kurmann
  • Working paper
  • 2011
VIEW 1 EXCERPT

Union Membership and Earnings Data Book: Compilations from the Current Population Survey." Washington: Bureau of National A¤airs

Hirsch, T Barry, David A. Macpherson
  • 2010

“Globalization and the Provision of Incentives Inside the Firm”

Cunat, Vicente, Maria Guadalupe
  • Journal of Labor Economics,
  • 2009