- Median Household Income Rose 1.8% in 2017, Census Bureau Figures Show
- Wages Are Growing Faster Than You Think, White House Says
- U.S. Household Income Rises to Pre-Recession Levels, Prompting Cheers and Questions
- The Economics and Emotions Behind Slow Wage Growth
We should also admit the possibility that there is no problem to solve, no mystery to explain — that wages are growing in line with the economy’s overall performance. Moody’s Analytics economist Adam Ozimek finds that when you measure slack using the employment rate rather than the unemployment rate, wages are growing at a pace you would expect.Or consider a simpler calculation: Roughly speaking, wages grow if workers are more productive and if overall prices are increasing. Productivity growth has been lower this cycle than in the past, and based on its performance wage growth is only slightly slower than you’d expect.These are compelling arguments, but I’m not sold. Wage growth is slower than we’d expect, and the reason is something of a mystery. Some combination of all the factors we’ve discussed is probably the culprit. This is good news, because it means that a healthy rate of wage growth is likely in the future. But let’s hope the future arrives sooner rather than later.