Wage inflation and informal work

Anat Bracha and Mary Burke

Economics Letters, 2018, vol. 171, issue C, 159-163

Abstract: Despite the low unemployment rate in the United States, wage inflation has remained modest. This paper investigates whether hidden labor market slack in the form of informal “gig” economy work could help explain this puzzle. Using our Survey of Informal Work Participation for 2015–2016 we find that informal labor is negatively associated with wage growth at the census division level, while no such association exists between wage growth and unemployment rates.

Keywords: Wage inflation; Gig economy; Labor market slack; Survey (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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Working Paper: Wage inflation and informal work (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:171:y:2018:i:c:p:159-163

DOI: 10.1016/j.econlet.2018.07.033

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