Low skill wages and mismeasured inflation

Luis Guimaraes

doi:10.1080/13504851.2018.1520961

Low skill wages and mismeasured inflation

Luis Guimaraes

Research output: Contribution to journal › Article › peer-review

33 Downloads (Pure)

Abstract

The current literature presents evidence that the real wage of male workers at the 10th percentile of the wage distribution has fallen since 1970. Yet, contributions within this literature deflate nominal wages using a mismeasured deflator. Another strand of literature documents that the mismeasurement of the deflator is sizable, with recent estimates exceeding0.6 percentage points per year. In this paper, I adjust the deflator and reestimate the implied evolution of male low skill wages. This simple exercise implies that male low skill wages were about 15 log-points higher in 2013 than in 1970.

Original language	English
Number of pages	7
Journal	Applied Economics Letters
Early online date	17 Sep 2018
DOIs	https://doi.org/10.1080/13504851.2018.1520961
Publication status	Early online date - 17 Sep 2018
Externally published	Yes

Access to Document

10.1080/13504851.2018.1520961Licence: Unspecified

Low skill wages and mismeasured inflation
© 2018 Informa UK Limited, trading as Taylor & Francis Group. This work is made available online in accordance with the publisher’s policies. Please refer to any applicable terms of use of the publisher.
Accepted author manuscript, 106 KBLicence: Unspecified

Luis Guimaraes
- L.Guimaraesqub.acuk
- Queen's Management School - Senior Lecturer
- Economics
Person: Academic

Cite this

@article{9abcd756e2084d95b4d35e07879ec234,

title = "Low skill wages and mismeasured inflation",

abstract = "The current literature presents evidence that the real wage of male workers at the 10th percentile of the wage distribution has fallen since 1970. Yet, contributions within this literature deflate nominal wages using a mismeasured deflator. Another strand of literature documents that the mismeasurement of the deflator is sizable, with recent estimates exceeding0.6 percentage points per year. In this paper, I adjust the deflator and reestimate the implied evolution of male low skill wages. This simple exercise implies that male low skill wages were about 15 log-points higher in 2013 than in 1970.",

author = "Luis Guimaraes",

year = "2018",

month = sep,

day = "17",

doi = "10.1080/13504851.2018.1520961",

language = "English",

journal = "Applied Economics Letters",

issn = "1350-4851",

publisher = "Routledge",

}

TY - JOUR

T1 - Low skill wages and mismeasured inflation

AU - Guimaraes, Luis

PY - 2018/9/17

Y1 - 2018/9/17

N2 - The current literature presents evidence that the real wage of male workers at the 10th percentile of the wage distribution has fallen since 1970. Yet, contributions within this literature deflate nominal wages using a mismeasured deflator. Another strand of literature documents that the mismeasurement of the deflator is sizable, with recent estimates exceeding0.6 percentage points per year. In this paper, I adjust the deflator and reestimate the implied evolution of male low skill wages. This simple exercise implies that male low skill wages were about 15 log-points higher in 2013 than in 1970.

AB - The current literature presents evidence that the real wage of male workers at the 10th percentile of the wage distribution has fallen since 1970. Yet, contributions within this literature deflate nominal wages using a mismeasured deflator. Another strand of literature documents that the mismeasurement of the deflator is sizable, with recent estimates exceeding0.6 percentage points per year. In this paper, I adjust the deflator and reestimate the implied evolution of male low skill wages. This simple exercise implies that male low skill wages were about 15 log-points higher in 2013 than in 1970.

U2 - 10.1080/13504851.2018.1520961

DO - 10.1080/13504851.2018.1520961

M3 - Article

JO - Applied Economics Letters

JF - Applied Economics Letters

SN - 1350-4851

ER -

Low skill wages and mismeasured inflation

Abstract

Access to Document

Fingerprint

Profiles

Luis Guimaraes

Cite this