Wage leadership in U.S. labour markets between alternative levels of industry and governments

David C. Black and Michael R. Dowd

Applied Economics, 2024, vol. 56, issue 42, 5050-5057

Abstract: Interaction between public and private sector real wages in the U.S. are examined over the periods 1952–2019, 1952–1972, and 1973–2019. Industries considered include all private industries and five broad industry subcategories. Measures of U.S. state & local governments and federal government are considered, and their changing contributions to total employment across periods provides context for wage leadership. Private sector wages caused federal wages as federal employment’s share of total employment decreased throughout the periods. In contrast, state & local government’s share of total employment grew substantially in the early period, with their wages causing private sector wages. In the later period, state & local government’s share of total employment stabilized and their wages cause those in half of the private sectors to be considered, with feedback in the remaining industries.

Date: 2024
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DOI: 10.1080/00036846.2023.2244237

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